■Wvfc^.. 


LAWS  OF  THE 

STATE  OF  MONTANA 

Relating  to 


Banks  and  Banking 
Corporations 


Compiled  From 

the  Revised  Codes  of  1 907  and  the 
Session  Laws  of  1909  by 


Banking  Department 
State  Examiner’s  Office 


LAWS  OF  THE. 

STATE  OF  MONTANA 

Relating  to 


Banks  and  Banking 
Corporations 


Compiled  From 

the  Revised  Codes  of  1 907  and  the 
Session  Laws  of  1909  by 

Banking  Department 
State  Examiner’s  Office 


Digitized  by  the  Internet  Archive 
in  2016  with  funding  from 

University  of  Illinois  Urbana-Champaign  Alternates 


https://archive.org/details/lawsofstateofmon1909mont 


INTRODUCTION. 

In  compiling  the  laws  of  Montana  relating  to  banks  and  banking 
corporations,  every  effort  has  been  made  to  include  all  laws  relating 
directly  thereto;  but  no  attempt  has  been  made  to  include  the  general 
corporation  laws,  many  of  which,  in  the  absence  of  specific  provisions  in 
the  banking  law,  may  apply  to  banking  corporations. 

H.  H.  PIGOTT, 

State  Bank  Examiner. 


fO 

rO 


4 


LAWS  OF  THE  STATE  OF  MONTANA 


LAWS  OF  MONTANA 
REFLATING  TO  BANKS  AND  BANKING 
CORPORATIONS. 


ARTICLES  OF  INCORPORATION. 

Section  3817.  The  instrument  by  which  a private  corporation  is 
formed  is  called  “Articles  of  Incorporation. ” 

Section  3818.  Articles  of  Incorporation  must  be  prepared,  setting 
forth : 

1.  The  name  of  the  corporation. 

2.  The  purpose  for  which  it  is  formed. 

3.  The  place  where  its  principal  business  is  to  be  transacted. 

4.  The  term  for  which  it  is  to  exist,  not  exceeding  twenty  years. 
(Under  Section  3825,  as  amended  by  Chapter  106,  Session  Laws  of  1909, 
a corporation  may  now  be  formed  for  a term  of  forty  years.) 

5.  The  number  of  its  directors  or  trustees,  which  shall  not  be  less 
than  three  nor  more  than  thirteen,  and  the  names  and  residences  of 
those  who  are  appointed  for  the  first  three  months  and  until  their  suc- 
cessors are  elected  and  qualified. 

6.  The  amount  of  its  capital  stock  and  the  number  of  shares  into 
which  it  is  divided,  and  if  there  be  more  than  one  class  of  stock,  created 
by  the  articles  of  incorporation,  a description  of  the  different  classes 
with  the  terms  on  which  the  respective  classes  are  created. 

(Subdivision  G of  Section  3818.  Act  approved  March  7,  1905.) 

7.  If  there  is*  a capital  stock  the  amount  actually  subscribed,  and 
by  whom. 

8.  If  the  stock  is  assessable  it  must  foe  so  stated. 

Section  3819.  The  articles  of  incorporation  in  the  following  cases 
must  also  state: 

1.  In  case  of  assessment  life  insurance  corporations,  the  articles  of 
incorporation  shall  state  as  provided  in  Sections  4147  and  4148  of  this 
Code, 

2.  And  in  articles  of  incorporation  of  institutions  of  learning,  shall 
state  as  provided  in  Section  4223  of  this  Code. 

3.  And  in  case  of  building  and  loan  associations  the  corporation 
shall  he  formed  as  provided  in  Session  Laws  1899.  Approved  March  3, 
1899. 

4.  In  case  of  religious,  benevolent  and  other  like  incorporations,  the 
articles  of  incorporation  shall  state  as  provided  in  Section  4226  of  this 
Code. 

5.  Articles  of  incorporation  of  any  railroad  company  shall  also  state 
the  names  of  the  counties,  states,  territories  and  countries  where  the 


RELATING  TO  BANKS  AND  BANKING  CORPORATIONS. 


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termini  of  said  road  are  to  be  located,  and  those  through  which  said 
road  shall  pass,  and  the  general  route  of  said  road,  also  the  amount 
of  capital  stock  necessary  to  construct  the  same. 

6.  In  the  case  of  the  formation  of  corporations  for  the  construction 
of  ditches  and  flumes,  the  articles  of  incorporation  must  also  state  the 
stream  or  streams  from  which  the  water  is  to  be  taken,  the  point  or 
place  on  said  stream  at  or  near  which  the  water  is  to  be  taken  out,  the 
line  of  the  ditch  or  flume,  and  the  use  to  which  the  water  is  to  be 
applied. 

7.  In  case  of  tunnel  corporations,  the  articles  of  incorporation  shall 
also  state  the  place  where  said  tunnel  is  to  be  run,  the  termini,  its 
course,  and  the  minerals  or  ore  designed  to  be  excavated. 

8.  In  the  case  of  telegraph  or  telephone  companies,  the  articles  of 
incorporation  shall  also  state  the  termini  of  such  line  or  lines,  and  the 
counties  through  which  they  shall  pass. 

Section  3820.  The  articles  of  incorporation  must  be  subscribed  by 
three  or  more  persons,  and  acknowledged  by  each  before  some  officer 
authorized  to  take  and  certify  acknowledgements  of  conveyances  of 
real  property. 


FEES  OF  SECRETARY  OF  STATE. 

Section  165.  The  Secretary  of  State,  for  services  performed  in  his 
office,  must  charge  and  collect  the  following  fees: 

I.  For  each  copy  of  any  law,  resolution  or  record,  or  other  docu- 
ment or  paper  on  file  in  his  office,  twenty  cents  per  folio. 

II.  For  affixing  certificate  and  seal,  one  dollar. 

III.  For  issuing  each  certificate  of  incorporation  and  each  certifi- 
cate of  increase  of  capital  stock,  three  dollars. 

IV.  For  recording  and  filing  each  certificate  of  incorporation  and 
each  certificate  of  increase  of  capital  stock,  the  following  amounts  shall 
be  charged: 

Amounts  up  to  $100,000.00,  fifty  cents  per  thousand  dollars. 

Aditional  from  $100,000.00  to  $250,000.00,  forty  cents  per  thousand 
dollars. 

Additional  from  $250,000.00  to  $500,000.00,  thirty  cents  per  thousand 
dollars. 

Additional  from  $500,000.00  to  $1,000,000.00,  twenty  cents  per  thou- 
sand dollars. 

Aditional  over  $1,000,000.00,  ten  cents  per  thousand  dollars. 

Providing,  that  no  fee  for  filing  any  articles  of  incorporation  or  in- 
crease of  capital  stock  shall  be  less  than  $20.00,  except  religious  soci- 
eties, churches,  and  organization  for  religious  purposes,  not  having  a 
capital  stock,  and  not  being  organized  for  the  purpose  of  profit. 

V.  For  issuing  each  certificate  of  decrease  of  capital  stock,  three 
dollars. 

VI.  For  recording  and  filing  each  certificate  of  decrease  of  capital 
stock,  five  dollars. 


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LAWS  OF  THE  STATE  OF  MONTANA 


VII.  For  issuing  each  certificate  of  continuance  of  corporate  exist- 
ence, three  dollars. 

VIII.  For  recording  and  filing  each  certificate  of  continuance  of 
corporate  existence,  the  following  amounts  shall  he  charged: 

Amounts  up  to  $100,000.00,  twenty-five  cents  per  thousand  dollars. 

Additional  from  $100,000.00  to  $250,000.00,  twenty  cents  per  thousand 
dollars. 

Additional  from  $250,000.00  to  $500,000.00,  fifteen  cents  per  thousand 
dollars. 

Additional  from  $500,000.00  to  $1,000,000.00,  ten  cents  per  thousand 
dollars. 

Additional  over  $1,000,000.00,  five  cents  per  thousand  dollars. 

IX.  For  recording  and  filing  each  notice  of  removal  of  place  of 
business,  each  certificate  of  change  of  name,  or  each  certificate  making 
capital  stock  assessable,  three  dollars. 

X.  For  filing  each  certified  copy  of  charter  or  articles  of  incorpora- 
tion of  any  foreign  corporation,  the  same  fee  shall  be  charged  as  is 
provided  for  in  Article  IV  of  this  Section,  for  domestic  corporations. 

XI.  For  filing  each  notice  of  appointment  of  agent,  five  dollars. 

XII.  For  filing  each  annual  or  semi-annual  statement  of  any  foreign 
corporation,  five  dollars. 

XIII.  For  receiving  and  recording  each  official  (bond,  two  dollars. 

XIV.  For  each  commission  or  other  document,  signed  by  the 
Governor,  and  attested  by  the  Secretary  of  State  (Pardon  and  Military 
Commissions  excepted),  five  dollars. 

XV.  For  searching  the  records  and  archives  of  the  State,  one  dollar. 

XVI.  For  filing  each  -trade  mark,  three  dollars;  and  for  issuing 
each  certificate  of  record,  one  dollar. 

XVII.  For  recording  miscellaneous  papers,  records,  or  other  docu- 
ments, for  filing,  one  dollar;  for  recording,  twenty  cents  per  folio. 

XVIII.  For  filing  any  other  paper  not  otherwise  herein  provided 
for,  one  dollar  for  filing  and  twenty  cents  per  folio  for  recording. 

“That  no  member  of  the  Legislative  Assembly,  or  State  or  county 
officer,  can  be  charged  for  any  search  relative  to  matters  appertaining 
to  the  duties  of  his  office;  nor  must  he  be  charged  any  fee  for  a certified 
copy  of  any  law  or  resolution  passed  by  the  Legislative  Assembly 
relative  to  his  official  duties.  Fees  must  be  collected  in  advance,  and 
when  collected  by  the  Secretary  of  State,  must  be  paid  to  the  State 
Treasurer  at  the  end  of  each  quarter,  as  provided  in  the  Constitution.'’ 


RELATING  TO  BANKS  AND  BANKING  CORPORATIONS. 


7 


Section  3909. 

BANKS  OF  DISCOUNT  AND  DEPOSIT. 
Incorporation  of  bank  of  discount  and  deposit 

3910. 

Bank  not  to  purchase  its  own  stock;  exception. 

3911. 

Powers. 

3912. 

Directors. 

3913. 

Purchase  of  real  estate. 

3914. 

Conveyance  of  real  estate. 

3915. 

Liability  of  stockholders. 

3916. 

Dividends. 

3917. 

Book  containing  names  of  stockholders. 

3918. 

Increase  of  capital  stock. 

3919. 

Forfeiture  of  franchise. 

3920. 

Limit  of  liability. 

3921. 

Relating  to  reserve. 

3922. 

Taxation. 

Section  3909.  Any  number  of  persons,  not  less  than  three  i 

than  thirteen,  may  associate  together  to  establish  a bank  of  discount 
and  deposit,  and  become  incorporated  upon  the  terms  and  conditions, 
and  subject  to  the  liabilities  prescribed  in  this  Title,  but  the  aggregate  of 
the  amount  of  the  capital  stock  of  any  such  corporation  shall  not  be 
less  than  twenty  thousand  dollars.  No  bank  organized  under  the 
provisions  of  this  Title  shall  transact  any  business  until  its  capital 
stock  has  been  paid  into  the  treasury  of  such  bank  in  cash,  and  until  a 
certificate  to  that  effect  under  oath  of  the  president  and  cashier  is  filed  in 
the  office  of  the  State  Auditor  (now  State  Examiner),  and  in  the  office  of 
the  county  clerk  in  the  county  where  such  bank  is  located,  nor  must  any 
such  bank  transact  any  business  except  as  is  incidental  and  necessarily 
preliminary  to  its  organization  until  it  has  been  authorized  by  the  State 
Auditor  (now  State  Examiner)  to  commence  the  business  of  banking, 
which  authorization  shall  be  certificate  under  his  hand  and  official  seal 
that  such  bank  has  complied  with  the  'provisions  of  this  Title,  and  is 
authorized  to  commence  the  business  of  banking.  The  bank  shall  cause 
the  certificate  and  authorization  of  the  State  Auditor  (now  State  Exam- 
iner), to  be  published  in  some  newspaper  published  in  the  town  or 
county  where  the  corporation  is  located,  for  at  least  four  insertions 
immediately  after  the  issuing  thereof. 

Section  3910.  The  name  of  such  bank  to  be  used  in  all  its  dealings, 
must  not  be  that  of  any  other  incorporated  bank  in  the  State.  No 
private  bank  must  use  any  crporate  name,  and  no  bank  must  be  the 
holder  or  purchaser  of  any  portion  of  its  own  stock  or  of  the  capital 
stock  of  any  other  incorporated  company  unless  such  purchase  shall  be 
necessary  to  prevent  loss  upon  a debt  previously  contracted  in  good 
faith,  on  security,  which  at  the  time  was  deemed  adequate  to  insure 
the  payment  of  such  debt,  independent  of  any  lien  upon  such  stock, 
and  stock  so  purchased  must  in  no  case  be  held  by  the  bank  so  pur- 
chasing for  a longer  period  of  time  than  six  months,  if  the  same  can 
be  sold  for  what  the  stock  cost  or  at  par. 

Section  3911.  Such  bank  when  so  organized  has  power  to  carry 


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LAWS  GF  THE  STATE  OF  MONTANA 


on  the  business  of  banking  by  discounting  on  banking  principles  upon 
such  securities  as  the  directors  or  trustees  deemj  expedient,  by  receiving 
deposits;  by  buying  or  selling  the  bonds  or  stocks  of  this  State  or  any 
other  state  or  territory  of  the  United  States;  also  the  bonds  of  any 
county,  city,  town  or  school  district  in  this  State  legally  authorized 
to  issue  such  bonds;  gold  and  silver  bullion;  foreign  coins  and  bills 
of  exchange;  by  loaning  money  on  real  and  personal  security,  and  by 
exercising  such  incidental  powers  as  may  be  necessary  to  carry  on 
such  corporation  or  business. 

Section  3912.  The  stockholders  must  elect  from  their  number  not  to 
exceed  thirteen  directors,  who  may  choose  from  their  number  a president 
and  vice  president,  and  appoint  a cashier,  teller,  and  such  other  officers 
and  agents  as  their  business  may  require,  and  remove  such  officers  at 
their  pleasure,  and  appoint  others.  The  first  directors  hold  their  office 
until  the  first  Monday  in  January  next  after  their  election  or  appoint- 
ment, and  until  their  successors  are  elected  and  qualified,  and  all  subse- 
quent elections  must  be  held  on  the  first  Monday  in  January  of  each 
year.  The  directors  are  authorized  to  adopt  such  by-laws  not  in  conflict 
with  this  part  as  may  be  necessary.  The  directors  must  be  citizens  of 
the  United  States,  and  at  least  three-fourths  of  them  must  be  residents 
of  the  State.  Every  director  must  own  in  his  own  right  at  least  ten 
shares  of  the  capital  stock  of  the  bank,  and  any  director  who  ceases 
to  be  the  owner  of  at  least  ten  shares,  or  who  becomes  in  any  other 
manner  disqualified,  thereupon  ceases  to  be  a director,  and  his  place 
muist  be  filled  until  the  next  election  by  the  directors.  Each  director, 
when  appointed  or  elected,  must  take  an  oath  that  he  will,  so  far  as 
the  duties  devolve  upon  him,  diligently  and  honestly  adininister  the 
affairs  of  such  bank,  and  will  not  knowingly  violate,  or  willingly  permit 
to  be  violated,  any  of  the  provisions  of  this  Title. 

Section  3913.  It  is  lawful  for  any  such  corporation  to  purchase, 
hold,  or  convey  real  estate,  as  follows: 

1.  Such  as  is  necessary  for  the  proper  transaction  of  business. 

2.  Such  as  is  mortgaged  to  it  in  good  faith  by  way  of  security  for 
loans  previously  made  by  or  moneys  due  to  the  corporation. 

3.  Such  as  is  conveyed  to  it  in  satisfaction  of  debts  previously  con- 
tracted in  the  course  of  its  business. 

4.  Such  as  it  purchases  at  sales  under  judgments,  decrees,  or  mort- 
gages held  by  the  corporation. 

Section  3914.  Every  conveyance  of  real  estate  by  such  corporation 
must  be  authorized  by  the  board  of  directors,  and  must  be  made  by 
an  instrument  under  the  hand  of  the  president,  or  vice  president  and 
cashier  of  said  bank,  with  the  seal  of  the  corporation  affixed  thereto, 
and  duly  acknowledged  by  them. 

Section  3915.  The  officers  and  stockholders  of  every  banking  cor- 
poration formed  under  the  provisions  of  this  Title  are  individually  liable 
for  all  debts  contracted  during  the  term  of  their  being  officers  or  stock- 
holders of  such  corporation  equally  and  rateably  to  the  extent  of  their 
respective  shares  of  stock  in  any  such  corporation,  except  that  when  any 


RELATING  TO  RANKS  AND  BANKING  CORPORATIONS. 


9 


stockholder  shall  sell  and  transfer  his  stock  sulch  liability  shall  cease 
at  the  expiration  of  six  months  from  and  after  the  date  of  such  sale 
and  transfer. 

Section  3916.  No  banking  corporation  shall  declare  any  dividend 
except  from  the  net  earnings  after  deducting  all  losses.  (See  Chapter 
112,  page  37.) 

Section  3917.  Every  corporation  doing  a banking  business  in  this 
State  must  keep  in  its  office,  in  a place  accessible  to  the  stockholders, 
depositors,  and  creditors  thereof,  and  for  their  use,  a book,  containing 
a list  of  all  stockholders  in  such  corporation,  and  the  number  of  shares 
of  stock  held  by  each;  and  every  such  corporation  must  keep  posted 
in  its  office,  in  a conspicuous  place,  accessible  to  the  public  generally, 
a notice,  signed  by  the  president  or  secretary,  showing: 

1.  The  names  of  the  directors  of  such  corporation. 

2.  The  number  and  value  of  shares  of  stock  held  by  each  director. 
The  entries  on  such  book,  and  such  notice,  shall  be  made  and  posted 
within  twenty-four  hours  after  any  transfer  of  stock,  and  shall  be  con- 
clusive evidence  against  each  director  and  stockholder  of  the  number 
of  shares  of  stock  held  by  each. 

The  provisions  of  this  Section  shall  apply  to  all  banking  corporations 
formed  or  existing  before  twelve  o’clock,  noon,  of  the  day  on  which  this 
Code  takes  effect,  as  well  as  to  those  formed  after  such  time. 

Section  3918.  It  is  lawful  for  any  corporation  organized  under  the 
provisions  of  this  Title,  by  their  by-laws,  to  provide  for  an  increase  of 
their  capital  stock,  but  no  such  increase  shall  be  valid  until  the  whole 
amount  of  such  increase  is  paid  in  cash,  and  such  payment  certified 
under  oath  by  the  president  or  cashier  to  the  State  Auditor  (now  State 
Examiner),  who  shall  give  his  certificate  specifying  the  amount  of  such 
increase,  with  his  approval  thereof,  and  that  it  has  been  duly  paid  in  as 
a part  of  the  capital  of  such  bank. 

Section  3919.  EVery  bank  organized  under  the  provisions  of  this 
Title  which  refuses  or  neglects  to  comply  with  the  requirements  lawfully 
made  upon  it  for  the  period  of  sixty  days  after  demand,  shall  be  deemed 
to  have  forfeited  its  franchise;  and  any  failure  on  the  part  of  such  bank 
to  comply  with,  or  any  violation  of  the  provisions  of  this  Title,  shall 
work  a forfeiture  of  its  franchise;  and  in  either  case  the  Attorney 
General,  or  the  County  Attorney  of  the  county  in  which  the  bank  is 
located,  upon  demand  of  the  State  Auditor  (now  State  Examiner),  shall 
commence  an  action  for  the  purpose  of  annulling  the  existence  of  said 
corporation. 

Section  3920.  The  total  liability  to  any  bank  incorporated  under 
the  provisions  of  this  Title  of  any  person  or  any  company,  corporation 
or  firm,  for  money  borrowed,  including  in  the  liabilities  of  a company 
or  firm  the  liabilities  of  the  several  members  thereof,  shall  at  no  time 
exceed  fixteen  per  cent  of  the  aggregate  amount  of  the  capital  stock 
of  such  corporation  actually  paid  in  and  of  the  permanent  surplus  fund 
of  such  bank;  but  the  discount  of  bills  of  exchange  drawn  in  good  faith 
against  actually  existing  values,  and  the  discount  of  commercial  or 


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LAWS  OF  THE  STATE  OF  MONTANA 


"business  paper  actually  owned  by  the  person  negotiating  the  same,  shall 
not  be  considered  as  money  borrowed. 

Section  3921.  Each  bank  organized  under  the  provisions  of  this  Title 
must  at  all  times  have  on  hand  in  available  funds,  an  amount  equal  at 
least  to  twenty  per  centum  of  all  its  immediate  liabilities;  one-half  of 
this  amount  of  available  funds  must  consist  of  balances  due  the  hank 
from  solvent  oanks,  one-half  of  such  sum  shall  be  held  in  reserve  as  cash 
in  hand.  Immediate  liabilities  shall  include  all  deposits  due  individuals, 
firms  or  corporations  or  to  banks,  and  all  items  in  the  nature  of  claims 
payable  on  demand.  In  cash  on  hand  shall  be  counted,  specie,  legal 
tender  notes,  and  all  bills  of  solvent  banks.  Whenever  available  funds 
of  any  bank  shall  be  below  twenty  per  centum  of  its  immediate  liabilities, 
such  corporation  shall  not  decrease  its  fund  by  making  any  new  loans, 
discounts  otherwise  than  by  discounting  or  purchasing  bills  of 
exchange  payable  at  sight,  nor  make  any  dividends  of  its  profits  until 
the  required  ratio  between  its  immediate  liabilities  and  its  available 
funds  has  been  restored.  Whenever  the  available  funds  on  hand  of  any 
bank  shall  not  equal  the  amount  above  provided  the  State  Examiner 
must  notify  such  bank  to  make  good  such  reserve,  and  if  such  bank 
shall  fail  to  do  so  within  thirty  days  after  such  notice,  it  shall  be 
deemed  guilty  of  a misdemeanor  and  upon  conviction  thereof  shall  be 
punished  by  a fine  of  not  less  than  one  hundred  dollars  nor  more  than 
five  hundred  dollars. 

(See  Section  4010.) 

Section  3922.  Banks  incorporated  under  the  provisions  of  this  Title 
shall  be  taxed  as  national  banks  are,  the  stock  to  pay  its  share  of  the 
revenue,  whether  held  in  the  State  or  not. 


TRUST  DEPOSIT  AND  SECURITY,  AND  SAVINGS  BANK  CORPORA- 
TIONS. 

TRUST  DEPOSIT  AND  SECURITY  CORPORATIONS. 


Section  3923. 

3924. 

3925. 

3926. 

3927. 

3928. 

3929. 

3930. 

3931. 


Number  of  corporators. 

Capital  stock.  Shall  begin  business,  when. 

First  meeting. 

Directors. 

Powers. 

What  property  may  be  held. 

May  call  in  remainder  of  stock. 

Investment  of  capital. 

Money  or  property  payable  or  returnable  on  demand,  un- 
less time  specified. 


3932.  Insurance  on  mortgaged  property. 

3933.  Transfer  of  stock. 


3934.  Liability  of  stockholders. 

3935.  Incorporation  of  trust  and  deposit  companies. 

3936.  Articles  of  agreement. 

3937.  Purposes  of  incorporation. 


RELATING  TO  BANKS  AND  BANKING  CORPORATIONS. 


11 


3938.  Directors. 

3939.  Dividends. 

3940.  Records  and  reports. 

3941.  Stock  of  trustees,  etc. 

3942.  Existing  corporations  may  reincorporate  under  this  Act. 

3943.  Procedure  on  reincorporation. 

3944.  Taxation  of  corporate  property. 

Section  3923.  Any  number  of  persons  not  less  than  three  may 

associate  together  to  form  a corporation  for  the  purpose  of  carrying 
on  a trust  deposit,  security  and  loaning  business,  and  with  powers 
herein  conferred. 

Section  3924.  The  amount  of  capital  stock  of  any  such  corporation 
shall  be  fixed  and  limited  by  the  corporators  in  their  articles  of  incor- 
poration, and  shall  not  be  less  than  one  hundred  thousand  dollars  nor 
more  than  five  hundred  thousand  dollars,  and  shall  be  divided  into 

shares  of  the  par  value  of  one  hundred  dollars  each.  When  one  hundred 
thousand  dollars  of  stock  shall  have  been  subscribed  for  and  the  amount 
paid  in  cash,  such  corporation  may  proceed  to  business  under  this 

Chapter.  The  capital  stock  of  any  corporation  organized  under  this 

Chapter  may  be  increased  by  a vote  of  the  stockholders  at  any  meet- 
ing called  for  that  purpose  to  any  sum  not  exceeding  five  hundred 
thousand  dollars.  Any  corporation  organized  under  the  provisions  of 
this  Chapter  may  qualify  and  proceed  to  business  within  ninety  days 
after  filing  articles  of  incorporation,  and  if  it  fails  to  do  so,  its  articles 
of  incorporation  shall  be  null  and  void. 

Section  3925.  When  any  corporation  is  formed  under  this  Chapter 
any  two  of  those  associated  may  call  the  first  meeting  of  the  corpora- 
tion at  such  time  and  place  as  they  may  oppoint,  by  giving  notice  there- 
of by  publishing  the  same  in  some  newspaper  published  at  the  place 
where  the  principal  office  for  the  transaction  of  business  is  to  be  located 
at  least  five  days  before  the  time  appointed  for  such  meeting;  but  no 
notice  is  necessary  if  all  the  subscribers  to  the  capital  stock  unite  in  a 
call  for  such  meeting  in  writing. 

Section  3926.  The  affairs  of  such  corporation  must  be  managed  by 
not  less  than  three  directors,  to  be  elected  by  the  stockholders,  and  to 
hold  their  offices  for  the  term  of  one  year,  and  until  their  successors 
shall  be  duly  chosen;  said  directors  must  choose  one  of  their  number 
president,  and  a majority  of  them  convened  according  to  the  by-laws 
constitutes  a quorum  for  the  transaction  of  business;  said  directors  have 
power  to  fill  any  vacancy  which  may  happen  in  their  board  for  the 
current  year,  and  they  may  elect  or  appoint  such  other  officer  as  they 
may  deem  expedient. 

Section  3927.  Any  corporation  organized  under  this  Chapter  has 
power,  in  and  by  its  corporate  name,  to  receive  money  from  any  person 
or  persons,  corporation  or  company,  on  deposit,  at  such  rate  of  interest 
and  for  such  time  as  may  be  agreed  upon,  for  the  purpose  of  loaning 
and  investing  the  same,  and  to  accept  and  execute  any  trust  which 
may  be  created  by  instruments  in  writing,  appointing  such  corporation 
trustee  for  any  lawful  purpose,  and  to  act  as  such  trustee  in  all  matters 


12 


LAWS  OF  THE  STATE  OF  MONTANA 


embraced  in  such  trust;  to  take  and  receive  from  any  individual  or 
corporation  on  deposit  for  safe  keping  and  storage,  gold  and  silver 
plate,  jewelry,  money,  stocks,  securities  and  other  personal  property, 
and  may  have  power  to  collect  coupons,  interest  and  dividends  on  said 
above  described  securities,  and  to  rent  out  the  use  of  safes  and  other 
reseptacles  on  their  premises  upon  such  terms  and  for  such  compensa- 
tion as  may  be  agreed  upon. 

Section  3928.  It  is  lawful  for  any  such  corporation  to  lease,  pur- 
chase, hold  and  convey  all  such  real  or  personal  property  as  may  be 
necessary  to  carry  on  its  authorized  business,  as  well  as  such  real  or 
personal  property  as  it  may  deem  necessary  to  acquire  in  the  enforce- 
ment or  settlement  of  any  claims  or  demands  arising  out  of  its  business 
transactions;  execute  and  issue  in  the  transaction  of  its  business  all 
necessary  receipts,  certificates  and  contracts,  which  shall  be  signed  by 
such  person  or  persons1  as  may  be  designated  by  the  by-laws  of  such 
corporation. 

Section  3929.  The  directors  of  any  such  corporation  may  call  in 
the  remainder  of  the  capital  stock  not  paid  in  when  the  corporation  is 
formed  in  such  installments  and  at  such  times  and  places  as  they 
may  deem  proper,  by  giving  notice  thereof  as  the  by-laws  prescribe; 
and  in  case  any  stockholder  neglects  or  refuses  payment  of  any  such 
installment  for  the  space  of  sixty  days  after  the  same  becomes  due 
and  payable,  and  after  he  has  been  notified  thereof,  the  stock  of  such 
delinquent  stockholder  may  be  sold  by  the  directors  at  public  auction, 
at  the  office  of  the  secretary  of  the  corporation,  giving  at  least  thirty 
days’  notice  by  publication  in  some  newspaper  published  at  the  place 
where  the  principal  office  for  the  transaction  of  business  of  such  cor- 
poration is  located. 

Section  3930.  The  board  of  directors  of  any  such  corporation  are 
hereby  authorized  to  invest  the  capital  of  said  corporation,  and  keep 
the  same  invested,  in  good  securities;  and  it  is  lawful  for  said  corpora- 
tion to  make  such  investments  of  its  capital,  and  the  funds  accumu- 
lated by  its  business,  including  money  deposits,  or  any  part  thereof, 
in-  notes  or  bonds  and  mortgages  on  unincumbered  real  estate,  within 
the  State  of  Montana,  and  also  on  any  and  all  stocks  or  bonds  of  this 
State,  or  any  other  State  or  Territory  of  the  United  States,  or  the  bonds 
of  any  county,  city,  town,  or  school  district,  of  this  State  legally  author- 
ized to  issue  such  bonds. 

Section  3931.  All  money  or  property  deposited  with  such  corpora- 
tion is  payable  or  returnable  to  the  depositor  on  demand,  unless  a par- 
ticular time  has  been  agreed  upon  for  its  payment  or  return,  in  which 
case  the  terms  of  the  agreement  regulate  the  payment  or  return. 

Section  3932.  Whenever  buildings  are  included  in  the  valuation  of 
any  real  estate  upon  which  a loan  is  made  by  any  such  corporation, 
they  must  be  insured  by  the  mortgagor  in  such  company  or  companies 
as  the  directors  shall  direct,  and  the  policy  of  insurance  shall  be  duly 
assigned  or  the  loss  made  payable,  as  its  interest  may  appear,  to  such 
corporation;  and  it  is  lawful  for  such  corporation  to  renew  such  policy 
of  insurance  in  the  same,  or  in  any  other  company  or  companies,  as 


RELATING  TO  BANKS  AND  BANKING  CORPORATIONS. 


13 


they  may  elect,  from  year  to  year,  or  for  a longer  or  shorter  term,  in 
case  the  mortgagor  neglects  to  do  so,  and  may  charge  the  amount  paid 
to  the  mortgagor;  and  all  the  necessary  charges  and  expenses  paid  by 
such  corporation  for  such  renewal  or  renewals  must  be  paid  by  such 
mortgagor  to  such  corporation,  and  it  is  a lien  upon  the  property  so 
mortgaged,  recoverable  with  interest  from  the  time  of  payment  as  part 
of  the  moneys  secured  to  be  paid  by  such  mortgage. 

Section  3933.  The  shares  of  the  stock  (of  the  corporation)  estab- 
lished under  this  Chapter  are  personal  property,  and  transferable  on 
the  books  of  the  corporation  in  such  manner  as  their  by-laws  prescribe. 

Section  3934.  The  stockholders  of  every  corporation  formed  under 
this  Chapter  are  individually  liable  for  all  debts  contracted  during  the 
time  of  their  being  stockholders  of  such  corporation,  equally  and  ratably 
to  the  extent  of  their  respective  shares  of  stock  in  any  such  corpora- 
tion held  by  them  at  the  time  such  debts  were  contracted. 

Section  3935.  Any  three  or  more  persons  who  shall  have  associated 
themselves  by  articles  of  agreement,  in  writing  as  provided  by  law, 
for  one  or  more  of  the  purposes  included  under  Section  3937  of  this 
Article,  may  be  incorporated  under  any  name  or  title  designating  such 
business. 

Section  3936.  The  artcles  of  agreement  shall  set  out: 

1.  The  corporate  name  of  the  proposed  corporation  which  shall  not 
be  the  name  of  any  other  corporation  heretofore  incorporated  in  this 
State  for  similar  purposes,  or  an  imitation  of  such  name. 

2.  The  name  of  the  city  or  town  and  county  in  which  the  principal 
office  of  the  corporation  is  to  be  located. 

3.  The  amount  of  the  capital  stock  of  the  corporation  authorized  by 
the  articles  of  agreement,  the  number  of  shares  into  which  it  is  divided, 
the  amount  of  capital  stock  actually  subscribed  in  good  faith  at  the  time 
of  the  filing  of  such  article;  and  said  articles  shall  further  state  that 
one-half  of  the  capital  stock  so  subscribed  has  been  actually  paid  up 
in  lawful  money  of  the  United  States,  and  is  in  the  custody  of  the  per- 
sons named  as  the  first  board  of  directors  or  managers;  Provided, 
however,  that  no  company  organized  under  this  Act  shall  begin  to  do 
business  until  one  hundred  thousand  dollars  in  cash  has  been  actually 
paid  in  as  aforesaid. 

4.  The  names  and  places  of  residence  of  the  several  shareholders, 
and  the  number  of  shares  subscribed  by  each. 

5.  The  number  of  the  board  of  directors  or  managers,  and  the 
names  of  those  agreed  upon  for  the  first  year. 

6.  The  number  of  years  the  corporation  is  to  continue,  which  in 
no  case  shall  exced  fifty  years. 

7.  The  purposes  for  which  the  association  or  company  is  formed. 

The  articles  of  agreement  shall  be  signed  and  acknowledged  by 

the  parties  thereto,  and  shall  be  filed  in  the  office  of  the  Secretary  of 
State,  and  a duplicate  thereof  recorded  in  the  office  of  the  recorder  of 
deeds  of  the  county  in  which  the  corporation  has  its  principal  place  of 
busines. 

The  Secretary  of  State  shall  thereupon  give  a certificate  setting 


14 


LAWS  OF  THE  STATE  OF  MONTANA 


forth  that  such  corporation  has  been  duly  organized,  and  the  amount 
of  its  authorized  and  subscribed  capital;  and  such  certificate  shall  be 
taken  by  all  courts  of  this  State  as  evidence  of  the  corporate  existence 
of  such  corporation.  The  persons  so  acknowledging  such  articles  of 
association  and  their  associates  and  successors  shall,  for  the  period 
not  to  exceed  fifty  years  next  succeeding  the  issuing  of  such  certifi 
cates  by  the  Secretary  of  State  be  a body  corporate;  and  by  such  name 
they  and  their  successors  shall  be  entitled  to  have,  possess  and  enjoy 
all  the  rights  and  privileges  conferred  by  law  upon  corporations,  subject 
to  the  provisions  of  this  Article. 

Section  3936.  Act  approved  March  8,  1893. 

Section  3937.  Corporations  may  be  created  under  this  Article  for 
any  one  or  more  of  the  following  purposes: 

First:  To  receive  moneys  in  trust  and  to  accumulate  the  same  at 
such  rates  of  interest  as  may  be  obtained  or  agreed  upon,  or  to  allow 
such  interest  thereon  as  may  be  agreed  upon. 

Second:  To  accept  and  execute  all  such  trusts,  and  perform  such 

duties  of  every  description,  as  may  be  committed  to  them  by  any  person 
or  persons  whatsoever,  or  by  any  corporations,  or  may  be  committed 
or  transferred  to  them  by  order  of  any  of  the  courts  of  record  of  this 
State  or  any  other  State,  or  of  the  United  States. 

Third:  To  take  and  accept  by  grant,  assignment,  transfer,  devise 

or  bequest,  and  hold  any  real  or  personal  estate  or  trust  created  in 
accordance  with  the  laws  of  this  State,  or  any  other  State,  or  of  the 
United  States,  and  execute  such  legal  trusts  in  regard  to  the  same,  on 
such  terms  as  may  be  declared,  established  or  agreed  upon  in  regard 
thereto,  or  to  execute  or  guarantee  any  bond  or  bonds  required  by  law, 
to  be  given  in:  any  proceeding  in  law  or  equity,  or  equity  in  any  of 
the  courts  of  this  State  or  any  other  State,  or  of  the  United  States. 

Fourth:  To  act  as  agent  for  the  investment  of  money  for  other 

persons  or  corporations,  and  as  agents  for  persons  and  corporations, 
for  the  purpose  of  issuing,  registering,  transferring  or  countersigning 
the  certificates  of  stock,  bonds  or  other  evidence  of  debt  of  any  cor- 
poration, association,  municipality,  state  or  public  authority  as  may  be 
agreed  upon. 

Fifth:  To  accept  from  and  execute  trusts  for  married  women  in 

respect  to  their  separate  property,  whether  real  or  personal,  and  act  as 
agents  for  them  in  the  management  of  such  property,  and  generally  to 
have  and  exercise  such  powers  as  are  usually  had  and  exercised  by 
trust  companies. 

Sixth:  To  act  as  trustee,  assignee,  or  receiver  in  all  cases  where 

it  shall  be  lawful  for  any  court  of  record,  officer,  corporation  or  person 
to  appoint  a trustee,  assignee  or  receiver,  and  to  be  appointed,  com- 
missioned, and  act  as  administrator  of  any  estate,  executor  of  any  last 
will  and  testament  of  any  deceased  person  and  as  guardian  of  the 
person  and  estate  of  any  minor  or  minors  or  of  the  estate  of  any  lunatic, 
imbecile,  spendthrift,  habitual  drunkard,  or  other  persons  disqualified  or 
unable  to  manage  their  estate. 

Seventh:  To  guarantee  the  fidelity  and  diligent  performance  of  the 


RELATING  TO  BANKS  AND  BANKING  CORPORATIONS. 


15 


duty  of  persons  holding  public  or  private  trust  and  to  certify  and  guar- 
antee title  to  real  estate. 

Eighth:  To  loan  money  upon  real  estate,  collateral,  or  personal 

security,  and  execute  and  issue  its  notes,  debentures,  payable  at  a future 
date;  and  to  pledge  its  mortgages  upon  real  estate  and  other  securities 
as  security  therefor. 

Ninth:  To  buy  and  sell  government,  state,  county,  municipal,  and 

other  bonds,  and  all  kinds  of  negotiable,  non-negotiable  and  commercial 
paper,  stocks  and  other  investment  securities. 

Tenth:  To  become  endorser  and  surety,  and  to  secure  indorsers  and 

sureties  for  a compensation  upon  such  terms  and  conditions  as  shall  be 
agree  upon  by  the  trustees  of  such  corporation. 

Eleventh:  To  accept,  receive,  and  hold  money  on  deposit,  payable 

either  on  time  or  on  demand,  with  or  without  interest,  as  may  be  agreed 
upon  with  the  depositors,  and  to  take  and  receive  from  any  individual 
or  corporation  on  deposit  for  safe  keeping  and  storage,  gold  and  silver 
plate,  jewelry,  stocks,  and  securities  and  other  valuable  and  personal 
property,  and  to  collect  coupons,  interest  and  dividends  on  said  above 
described  sureties,  and  to  rent  out  the  use  of  safes  and  other  receptacles 
on  their  premises  upon  such  terms  and  for  such  compensation  as  may 
be  agreed  upon. 

Section  3937.  Act  approved  March  15,  1901. 

Section  3938.  The  amount  of  capital  stock  actually  subscribed  of 
any  corporation,  organized  under  this  Article,  shall  not  be  less  than 
one  hundred  thousand  dollars,  and  the  amount  of  the  capital  stock 
authorized  by  such  articles  shall  not  be  more  than  ten  millions  of  dollars. 
The  property  and  business  of  the  corporation  shall  be  controlled  and 
managed  by  directors,  not  less  than  three  or  more  than  twenty-five  in 
number,  who  shall  respectively  be  stockholders  of  such  corporation, 
and  a majority  of  whom  shall  be  bona,  fide  citizens  of  this  State,  to 
be  elected  by  ballot  as  provided  by  law  by  the  shareholders  of  such 
corporation  for  one  year,  if  the  number  of  directors  of  such  corporation 
does  not  exceed  five,  at  such  time  and  place  as  shall  be  directed  by 
the  law  of  such  corporation,  of  which  time  and  place  at  lease  two 
weeks’  notice  shall  be  published  in  some  newspaper  at  least  once  a week 
in  the  city  or  county  in  which  the  corporation  is  located,  and  if  there 
be  no  newspaper  published  in  such  county,  then  in  any  newspaper 
published  in  the  State,  which  circulates  in  the  locality  where  such 
corporation  is  located.  Such  election  shall  be  made  by  such  of  the  share- 
holders as  shall  attend  in  person,  or  by  proxy  in  writing  . In  case  the 
election  shall  not  be  made  on  the  day  named,  the  said  corporation  shall 
not  thereby  be  dissolved,  but  an  election  day  mlay  be  had  at  any  other 
time,  agreeable  to  the  by-laws  of  said  corporation;  and  the  persons 
so  elected  shall  hold  their  office  until  others  are  elected  and  qualified. 
If  the  number  of  directors ' of  such  corporation  named  in  the  articles 
of  association  shall  exceed  five  in  number,  they  shall,  as  soon  as  may 
be  after  the  organization,  divide  themselves  by  ballot  into  three  classes 
of  equal  number  as  near  as  may  be,  designated  the  first,  second  and  third 
class,  of  which  the  first  class  shall  remain  in  office  one  year,  the  second 


16 


LAWS  OF  THE  STATE  OF  MONTANA 


class  two  years,  andJ  the  third  class  three  years,  and  at  each  annual 
election  conducted  in  the  manner  hereinbefore  designated,  directors 
shall  be  elected  for  the  term  of  three  years  to  fill  the  vacancies  created 
by  the  retiring  class.  In  case  of  death  or  resignation  of  one  or  more  of 
said  directors,  the  survivors  shall  fill  the  vacancy  until  the  next  election. 

Section  3938.  Act  approved  March  8,  1893. 

Section  3939.  Such  a corporation  shall  own  only  such  real  estate  as 
may  be  required  for  the  transaction  of  their  business,  and  such  as  they 
may  acquire  in  the  enforcement  and  collection  of  debts  and  liabilities 
due  them.  Dividends  of  the  profits  of  the  corporation  may  be  declared 
by  the  trustees  or  directors  thereof  every  six  months,  or  oftener,  as  the 
directors  mtay  elect;  but  no  such  dividend's  shall  be  made  and  paid  to 
stockholders  while  such  corporation  is  in  an  insolvent  condition,  nor  shall 
any  dividends  be  declared  which  would  render  such  corporation  insolvent; 
if  the  directors  of  such  corporation  shall  knowingly  declare  and  pay  any 
dividends  when  the  corporation  is  insolvent,  or  any  dividends  the  pay- 
ment of  which  would1  render  it  insolvent,  they  shall  be  jointly  and 
severally  liable  for  all  debts  of  the  corporation  then  existing  and  for  all 
that  shall  thereafter  be  contracted  while  thej'-  shall  respectively  continue 
in  office.  (See  also  Chapter  112,  page  37.) 

Section  3940.  The  trustees  of  the  corporation  shall  keep  correct 
account  of  their  transactions,  and  have  full  statements  of  the  condition 
of  affairs  of  such  corporation  made  out  and  exhibited  to  the  stockholders 
as  often  as  once  in  each  year,  at  least  ten  days  before  the  day  of  election. 
The  books  and  all  records  of  the  proceedings  of  such  corporation  shall  at 
all  times  during  their  hours  of  business  be  open  for  inspection  and  exam- 
ination to  all  stocknolders,  and  the  Auditor  (State  Examiner;  of  this  State, 
or  to  such  person  or  persons  as  the  Legislative  Assembly  of  said  State  or 
the  State  Auditor  (State  Examiner)  shall  designate  or  appoint  as  agent 
for  this  purpose.*  Every  association  shall  make  a report  of  its  condition 
to  the  State  Auditor  on  the  first  Monday  of  each  January,  April,  July 
and  October,  and  at  such  other  times  as  said  Auditor  may  call  for  it, 
under  the  oath  of  its  president  or  treasurer,  attested  by  a majority  of  the 
directors,  showing  in  detail  its  liabilities  and  assets,  and  specifying 
its  investments  under  heads  of  loans  on  mortgages,  loans  on  collateral 
security,  loans  on  personal  security,  bonds  and  stocks,  deposits  in  bank 
and  cash  on  hand.  An  officer  or  clerk  of  such  association  who  shall 
wilfully  make  a false  oath  or  affidavit  relative  to  the  financial  condition 
of  such  association  shall  be  deemed  guilty  of  perjury,  and  upon  conviction 
thereof,  shall  be  punished  accordingly. 

(*That  part  of  Section  3940  requiring  reports  to  State  Auditor  is 
repealed  by  Section  3996.) 

Section  3941.  No  person  holding  stock  in  the  corporation  as  executor, 
administrator,  guardian,  or  trustee,  and  no  person  holding  such  stock 
or  collateral  security,  shall  be  personally  subject  to  any  liability  as 
stockholder  in  such  corporation;  but  the  person  pledging  such  stock  shall 
be  considered  as  holding  the  same  and  shall  be  liable  as  a stockholder 
accordingly.  And  the  estate  and  funds  in  the  hands  of  such  executors, 


RELATING  TO  BANKS  AND  BANKING  CORPORATIONS. 


17 


administrators,  guardians  or  trustees,  shall  be  liable  in  like  manner 
and  to  the  same  extent  as  testator  or  intestate,  or  the  ward  of  the  person 
interested  in  such  trust  fund  would  have  been  if  he  had  been  living  and 
competent  to  act  and  hold  the  same  stock  in  his  own  name.  Every 
such  executor,  administrator,  guardian  or  trustee,  shall  represent  the 
shares  of  the  stock  in  his  hands  at  all  meetings  of  the  corporation,  and 
may  vote  accordingly  as  a shareholder;  and  every  person  who  shall 
pledge  his  stock  as  aforesaid,  may  nevertheless  represent  the  same  at 
all  meetings,  and  may  vote  accordingly  as  a shareholder. 

Section  3941.  Act  approved  March  8,  1893. 

Section  3942.  The  rights  of  any  corporation  heretofore  organized 
under  the  Act  hereby  amended  shall  not  be  affected  by  this  Act;  but 
any  such  company  may  at  any  regular  meeting  of  its  stockholders, 
by  a resolution  passed  by  a majority  thereof,  avail  itself  of  the  benefits 
of  this  Act,  and  any  such  company,  whether  heretofore  or  hereafter 
organized  for  any  of  the  purposes  mentioned  herein,  may  increase  or 
diminish  its  capital  stock  by  complying  with  the  provisions  of  this  law, 
and  may  also  extend  its  business  to  any  other  purpose  authorized  by 
this  Act,  subject  to  the  provisions  and  liabilities  thereof. 

Section  3942.  Act  approved  March  8,  1893. 

(Section  3943.  Whenever  any  corporation  shall  desire  to  call  a 
meeting  of  its  stockholders  for  the  purpose  of  availing  itself  of  the 
provisions  and  privileges  of  this  Article,  or  for  increasing  or  diminishing 
its  capital  stock,  or  for  extending  or  changing  its  business,  it  shall  be  the 
duty  of  the  directors  to'  publish  a notice  signed  by  at  least  a majority  of 
them,  in  a newspaper  in  the  county  at  least  twenty  days,  and  to  deposit 
a written  or  printed  copy  in  the  postoffice,  postage  prepaid,  addressed 
to  each  stockholder  at  his  usual  place  of  residence,  at  least  twenty 
days  previous  to  the  day  fixed  upon  for  holding  such  meeting,  specifying 
the  object  of  the  meeting,  the  time  and  place,  when  and  where  such 
meeting  shall  be  held,  and  the  amount  to  which  it  shall  be  extended 
or  changed.  An  affirmative  vote  of  the  persons  holding  two-thirds  in 
value  of  all  the  shares  of  stock  shall  be  necessary  to.increase  or  diminish 
the  amount  of  its  capital  stock  or  to  extend  or  change  its  business  as 
aforesaid,  or  to  enable  the  corporation  to'  avail  itself  of  the  provisions 
of  this  Article.  If  at  any  timfe  and  place  specified  in  the  notice  provided 
for  in  the  preceding  section,  stockholders  shall  appear  in  person  or 
hy  proxy  in  nuimber  'representing  not  less  than  two-thirds  of  all  the 
shares  of  stock  of  the  corporation  they  shall  organize  by  choosing  one 
of  the  directors  chairman  of  the  meeting  and  a suitable  person  for  secre- 
tary, and  proceed  to  a vote  of  those  present  in  person  or  by  proxy;  and 
if  on  canvassing  the  vote,  it  shall  appear  that  a sufficient  number  of 
votes  has  been  given  in  favor  of  increasing  or  diminishing  the  amount  of 
capital  stock  or  of  extending  or  changing  its  business  as  aforesaid,  or 
availing  itself  of  the  privileges  and  provisions  of  this  Article,  a statement 
of  the  procedings  showing  a compliance  with  the  provisions  of  this  Arti- 
cle— the  amount  of  the  capital  stock  actually  paid  in,  the  business  to  which 
is  extended  or  changed,  the  whole  amount  of  assets  and  liabilities  of  the 
corporation  and  the  amount  to  which  the  capital  stock  shall  be  increased 


LAWS  OF  THE  STATE  OF  MONTANA 


or  diminished — shall  be  made  out,  signed  and  verified  by  the  affidavit  of 
the  chairman,  and  be  countersigned  by  the  secretary,  and  such  statement 
shall  be  acknowledged  by  the  chairman  and  recorded  as  provided  in  Sec- 
tion 393G,  and  a certified  copy  of  such  recorded  instrument  shall  be  filed  in 
the  office  of  the  Secretary  of  State,  who  shall  thereupon  issue  a certificate 
that  such  corporation  has  complied  with  the  law  made  and  provided 
for  the  increase  or  decrease  of  capital  stock  as  the  case  may  be 
and  the  amount  to  which  such  stock  is  increased  or  decreased;  and 
such  a certificate  shall  be  taken  in  all  courts  of  the  State  as  evidence 
of  such  increase  or  decrease  of  stock;  and  thereupon  the  capital  stock 
of  such  corporation  shall  be  increased  or  diminished  to  the  amount  speci- 
fied in  said  certificate,  and  the  business  extended  or  changed  as  afore- 
said, and  the  corporation  shall  be  entitled  to  the  privileges  and  pro- 
visions and  be  subject  to  the  liabilities  of  this  Article. 

Section  3943.  Act  aproved  March  8,  1983. 

Section  3944.  The  property  of  the  corporation  organized  under  this 
Act  shall  be  assessed  for  taxes  in  the  same  manner  as  the  property  of 
national  banks  and  no  other.  All  Acts  and  parts  of  Acts  in  conflict 
with  this  Act  be  and  the  same  are  hereby  repealed. 

Section  3944.  Act  approved  March  8,  1893. 

(Section  3944  unconstitutional.  See  Daly  Bank  & Trust  Co.  vs. 

Board  Co.  Commissioners,  33  Mont.  101.) 


SAVINGS  BANK  CORPORATIONS. 


Section  3945. 

3946. 

3947. 

3948. 

3949. 

3950. 

3951. 

3952. 

3953. 

3954. 

3955. 

3956. 

3957. 

3958. 


Incorporation. 

Capital  Stock. 

Directors  and  officers,  election  and  qualification  of. 
Majority  of  directors  required  to  do  business. 
Business. 

Deposits. 

Investment  of  capital  stock. 

Officers  not  to  borrow. 

Liability  of  officers  and  stockholders. 

Real  estate,  what  may  be  held. 

Inspection  of  books,  report. 

Contingent  fund. 

Married  women  and  minors,  rights  of. 

May  deposit  cash  with  other  banks. 


Section  3945.  Any  number  of  persons,  not  less  than  three,  may  as- 
sociate themselves  together  under  the  provisions  of  this  Chapter,  and 
become  incorporated  as  a savings  bank,  who  shall,  with  their  successors, 
constitute  a body  politic  and  corporate,  under  the  name  adopted  by  them 
in  their  articles  of  incorporation,  provided  no  such  corporation  shall 
adopt  a name  previously  adopted  by  any  other  corporation  in  this  State. 

Section  3946.  No  corporation  must  be  organized  as  a savings  bank 
under  the  provisions  of  this  Chapter  with  a capital  stock  of  less  than  one 
hundred  thousand  dollars  fully  paid,  in  cash,  prior  to  the  reception  of 


RELATING  TO  BANKS  AND  BANKING  CORPORATIONS. 


19 


deposits  by  such  bank;  but  such  corporation  may  organize  on  a basis  not 
exceeding  five  hundred  thousand  dollars  capital  stock,  of  which  at  least 
one  hundred  thousand  dollars  must  be  paid  in  before  deposits  are  re- 
ceived, and  the  balance  upon  the  call  of  the  directors  of  such  corpora- 
tion within  five  years  from  the  date  of  filing  articles  of  incorporation, 
but  not  more  than  twenty-five  per  cent  of  such  unpaid  capital  must  be 
called  during  any  one  year,  and  all  calls  to  be  miade  upon  thirty  days’ 
notice.  Such  capital  must  be  held  by  the  bank  as  a guarantee  to  its 
depositors  to  make  good  any  loss  or  depreciation  of  the  funds  of  the 
corporation,  and  must  be  invested  as  hereinafter  provided  for  the  in- 
vestment of  the  funds  of  such  corporation.  Each  stockholder  must  re- 
ceive a certificate  of  the  portion  of  the  capital  stock  owned  by  him, 
which  must  be  transferable  on  the  books  of  the  corporation,  and  entitles 
the  holder  to  participate  in  the  profits  of  the  corporation  after  the  de- 
positors have  been  paid  such  rates  of  interest  as  may  be  provided  by  the 
by-laws  of  the  corporation,  to  such  extent  and  in  such  manner  as  may 
be  prescribed  in  the  by-laws,  and,  at  the  dissolution  of  said  corporation, 
to  receive  the  proportionate  amount  of  the  profits  which  remains  after 
the  payment  of  the  depositors. 

Section  3947.  The  stockholders  must  elect  from  their  number  not 
to  exceed  thirteen  directors,  who  may  choose  from  their  number  a presi- 
dent and  vice-president  and  appoint  a. cashier  and  teller  and  such  other 
officer  and  agents  as  their  business  may  require,  and  remove  such 
officers  at  their  pleasure  and  appoint  others.  The  first  directors  hold 
their  office  until  the  first  Monday  in  January  next  after  their  election 
or  appointment,  and  until  their  successors  are  elected  and  qualified  and 
all  subsequent  elections  must  be  held  on  the  first  Monday  of  January  of 
each  year.  The  directors  are  authorized  to  adopt  such  by-laws  not  in 
conflict  with  this  Title  as  may  be  necessary. 

The  directors  must  be  citizens  of  the  United  States,  and  at  least 
three-fourths  of  them  must  be  residents  of  the  State.  Every  director 
must  own  in  his  own  right  at  least  ten  shares  of  the  capital  stock  of  the 
bank,  and  any  director  who  ceases  to  be  the  owner  of  at  least  ten  shares, 
or  who  becomes  in  any  other  manner  disqualified,  shall  thereupon  cease 
to  be  a director,  and  his  place  must  be  filled  until  the  next  election  by  the 
directors. 

Each  director,  when  elected  or  appointed,  must  take  an  oath  that 
he  will,  so  far  as  the  duties  devolve  upon  him,  diligently  and  honestly 
administer  the  affairs  of  such  bank,  and  will  not  knowingly  violate  or 
willingly  permit  to  be  violated,  any  of  the  provisions  of  this  Chapter.. 

Section  3948.  The  affirmative  vote  of  at  least  a majority  of  the  mem- 
bers of  the  board  of  directors  is  required  in  making  any  order  for  or 
authorizing  any  investment  of  any  money  or  the  sale  or  transfer  of  any 
stock  or  securities,  or  other  real  or  personal  property  belonging  to  the 
corporation,  or  the  appointment  of  any  officer  receiving  any  salary  there- 
from. 

Section  3949.  The  business  of  such  corporation  is  to  receive  on  de- 
posit such  sums  of  money  as  may  from  time  to  time  be  offered  there- 
for, for  safe  keeping  or  for  investment,  in  accordance  with  the  terms 


20 


LAWS  OF  THE  STATE  OF  MONTANA 


of  this  chapter.  Said  corporation  must  receive  on  deposit  all  sums 
of  money  which  may  be  offered  for  the  purpose  aforesaid,  but  every  such 
corporation  has  the  right  to  limit  the  aggregate  amount  which  any  one 
person  or  society  may  deposit  to'  such  sum  as  it  may  deem  expedient  to 
leceive,  and  may  refuse  to  receive  any  deposit,  and  at  any  time  may 
return  all  or  any  part  of  any  deposit. 

Section  3950.  All  deposits  must  be  receive  by  said  corporation  and 
returned  to  the  depositors  under  such  regulations  as  the  board  of  direc- 
tors from  time  to  time  prescribe,  which  regulations  must  be  posted  in 
some  conspicuous  place  in  a room  where  such  corporation  transacts  its’ 
business  and  printed  in  all  pass  books  delivered  to  its  depositors. 

Section  3951.  At  least  one-half  of  the  capital  paid  in  and  one-half 
of  the  whole  amount  deposited,  must  be  invested  in  bonds  or  other 
securities  of  the  United  States,  or  any  of  the  States  or  Territories,  or  any 
county,  city,  town  or  school  districts  of  this  State,  on  which  interest  is 
regularly  paid;  or  loaned  on  unincumbered  real  estate,  worth  at  least 
double  the  amount  to  be  secured.  The  remainder  may  be  invested  in 
said  bonds  or  loaned  on  the  aforesaid  securities  or  on  approved  personal 
security;  but  no  loan  miust  be  miade  on  personal  security  of  less  than 
two  responsible  persons  or  collateral  security  to  be  approved  by  the 
directors,  but  no  loan  upon  personal  security  shall  be  made  to  any  one 
person  or  co-partnership,  to  an  amount  exceeding  ten  thousand  dollars. 

Section  3952.  No  president,  vice  president,  director,  or  other  officer 
or  servant  of  such  corporation,  shall  directly  or  indirectly  borrow  any 
of  the  funds  of  such  corporation  or  of  its  deposits,  or  in  any  manner 
use  the  same  in  their  private  affairs  or  business,  nor  shall  any  director 
receive  any  pay,  salary  or  emolument,  until  after  such  interest  as  the 
directors  shall  have  been  determind  to  allow  depositors  shall  be  pro- 
vided for  in  accordance  with  the  regulations  of  the  corporation. 

Section  3953.  The  officers  and  stockholders  of. every  banking  cor- 
poration formed  under  the  provisions  of  this  Chapter  are  individually 
liable  for  all  debts  contracted  during  the  term  of  their  being  officers 
or  stockholders  of  such  corporation  equally  and  rateably  to  the  extent 
of  their  respective  shares  of  stock  in  any  such  corporation,  except  that 
when  any  stockholder  sells  and  transfers  stock  such  liability  ceases  at 
the  expiration  of  six  months  from  and  after  the  date  of  such  sale  and 
transfer. 

Section  3954.  The  real  estate  which  such  corporation  may  lawfully 
purchase,  hold  and  convey,  is: 

1.  Such  as  may  be  necessary  for  the  proper  transaction  of  its 
business,  not  exceeding  in  value  one  hundred  and  fifty  thousand  dollars. 

2.  Such  as  is  mortgaged  to  it  in  good  faith  for  moneys  loaned  in 
pursuance  of  the  provisions  of  this  Chapter,  or  given  as  security  for 
money  loaned  or  advanced. 

3.  Such  as  is  purchased  at  sale  on  judgment  or  decree  obtained  or 
rendered  for  money  so  loaned  or  advanced.  And  the  said  corporation 
must  not  purchase,  hold  or  convey  real  estate  in  any  other  case  or  for 
any  other  purpose.  And  said  corporation  shall  not  buy  or  sel1  au 


RELATING  TO  BANKS  AND  BANKING  CORPORATIONS. 


21 


personal  property,  except  such  as  may  be  necessary  for  the  proper 
transaction  of  its  business,  or  such  as  may  have  been  pledged,  mortgaged 
or  assigned  to  it,  to  secure  money  loaned  or  advanced. 

Section  3955.  *The  oooks  of  said  corporation  must  at  all  times  during 
its  hour  oif  business,  be  open  for  inspection  and  examination  to  the 
State  Auditor,  or  such  other  person  or  persons  as  the  Legislative  Assem- 
bly or  the  State  Auditor  designates  or  appoints  as  agent  for  this  purpose. 
Every  corporation  must  make  a report  of  its  condition  to  the  State 
Auditor  on  the  first  Mondays  of  January,  April,  July  and  October,  and 
at  such  other  times  as  said  Auditor  may  call  for  it,  under  the  oath  of  its 
president  or  treasurer,  attested  by  a majority  of  the  directors,  showing 
in  detail  its  liabilities  and  assets,  and  specifying  its  investments  under 
heads  of  loans  on  mortgages,  loans  on  collateral  security,  loans  on 
personal  security,  bonds  and  stock,  deposits  in  bank  and  cash  on  hand. 
Any  officer  or  clerk  of  such  corporation  who  wilfully  makes  a false  oath 
or  affidavit  relative  to  the  financial  condition  of  such  corporation,  is 
guilty  of  perjury,  and  upon  conviction  thereof  must  be  punished  accord- 
ingly. 

*(See  Section  3996  as  to  change  in  dates  and  manner  of  reports.) 

Section  3956.  Each  corporation  organized  under  the  provisions  of 
this  Chapter  must  set  aside  annually  at  least  five  per  cent  of  its  net 
profits  as  a contingent  fund  to  meet  extraordinary  expenses  or  losses 
until  such  surplus  amounts  to  twenty  per  cent  of  the  capital  stock  of 
such  corporation. 

Section  3957.  Married  women  and  minors  may,  in  their  own  right, 
make  and  draw  deposits  and  draw  dividends,  and  give  valid  receipts* 
therefor. 

Section  3958.  Any  corporation  organized  under  the  provisions  of  this 
Chapter  has  power  to  deposit  any  cash  on  hand  in  any  bank,  or  with 
any  loan  and  trust  company,  within  the  State,  which  the  board  of  directors 
may  determine  to  be  solvent,  upon  such  terms  as  may  to  such  directors 
be  satisfactory,  but  no  greater  sum  than  fifty  thousand  dollars  shall 
be  at  any  one  time  deposited  in  any  one  bank  or  corporation. 


REGULATION  OF  BANKING  CORPORATIONS. 


Section  3992. 

3993. 

3994. 

3995. 

3996. 

3997. 

3998. 

3999. 

4000. 

4001. 

4002. 

4003. 


Unlawful  to  use  title  unless  incorporated. 

Loans  to  officers  or  directors  of  banks  prohibited. 
Penalty  for  violation  of  act. 

Duty  of  county  attorney  to  prosecute. 

Quarterly  reports  to  state  examiner. 

Dividends. 

Statement  of  dividend. 
iStatements  confidential. 

Penalties  for  failure  to  make  statements. 

False  statements. 

Date  of  first  report. 

Dissolution  of  banking  corporation. 


22 


LAWS  OF  THE  STATE  OF  MONTANA 


4004.  Impairment  of  capital.  Duties  of  state  examiner. 

4005.  Increase  of  capital  stock. 

4006.  Reduction  of  capital  stock. 

4007.  Transaction  of  business  after  insolvency.  Penalty. 

4008.  Accepting  deposits  when  insolvent.  False  entries.  Pen- 

alty. 

4009.  Duties  of  State  Examiner. 

4010.  Reserve  funds. 

4011.  Maximum  liabilities. 

4012.  Liabilities  of  stockholders. 

4013.  Taxation  of  banks. 

4014.  Penalties. 

4015.  This  act  to  affect  only  domestic  corporations. 

Section  3992.  It  shall  be  unlawful  for  any  person  to  use  the  words 
“trust”,  or  “trust  company”,  “savings”,  or  “savings  bank”,  in  the  title 
of  any  business,  corporate  or  otherwise,  unless  such  business  be  organ- 
ized and  incorporated  under  the  laws  of  Montana,  relating  to  “Trust 
Deposit  and  Security,  and  Savings  Bank  Corporations,”  or  such  business 
is  to  be  conducted  by  a foreign  corporation  which  has  fully  complied 
with  the  laws  of  Montana,  and  is  duly  qualified  and  authorized  to  con- 
duct business  in  the  State  of  Montana.  Any  person  or  persons  violating 
the  provisions  of  this  section,  either  individually  or  as  an  interested  party 
in  a co-partnership  or  corporation,  shall  be  guilty  of  a misdemeanor,  and 
on  conviction  thereof  shall  be  fined  in  a sum  not  less  than  three  hun- 
dred nor  more  than  one  thousand  dollars,  or  by  imprisonment  in  the 
County  Jail  not  less  than  sixty  days  nor  more  than  one  year,  or  by  both 
such  fine  and  imprisonment. 

Section  3993.  That  on  and  after  the  passage  of  this  Act,  it  shall  be 
unlawful  for  any  bank,  banking  institution  or  trust  company,  organized 
and  doing  business  under  the  Laws  of  this  State,  to  make  a loan  to 
any  managing  officer  of  such  bank  without  taking  good  collateral  or  other 
ample  and  specific  security  therefor,  and  when  such  loan  or  a loan  made 
to  a director  of  such  bank,  banking  institution  or  trust  company,  exceeds 
in  amount  ten  per  cent  of  its  capital  stock,  it  shall  not  be  made  until 
first  approved  by  a majority  of  the  directors  of  such  bank,  banking  insti- 
tution or  trust  company,  which  said  approval  shall  be  entered  upon  the 
records  of  such  bank,  and  the  signatures  of  a majority  of  the  Board  of 
Directors  approving  same  shall  be  attached  thereto,  and  be  and  remain 
a permanent  record  of  such  bank. 

Section  3994.  Any  bank  or  any  managing  officer  of  any  bank,  violating 
any  of  the  provisions  of  this  Act,  shall  be  liable  to  a fine  of  one  thousand 
dollars,  to  be  recovered  in  an  action  at  law,  for  the  use  of  the  public 
school  fund  of  the  county  where  located,  and,  in  addition,  such  managing 
officer  may  be  imprisoned  in  the  State  Prison  for  not  less  than  one  year, 
nor  more  than  ten  years. 

Section  3995.  It  is  hereby  made  the  duty  of  the  County  Attorney, 
in  each  and  every  county  in  the  state,  to  prosecute  to  a final  determina- 
tion any  violation  of  this  Act,  and  of  the  State  Bank  Examiner  to  report 
same  to  such  officer. 


RELATING  TO  BANKS  AND  BANKING  CORPORATIONS. 


23 


Section  3996.  Each  state  bank  and  banking  corporation,  trust  deposit 
and  security  corporation,  savings  bank  corporation,  or  banking  corpora- 
tion organized  under  Article  I,  Chapter  1,  Title  II,  Part  IV,  of  the  Civil 
Code  of  Montana  for  the  transaction  of  any  banking  business,  shall 
make  to  the  State* Examiner  not  less  than  fouir  reports  during  each 
year,  all  at  his  call,  not  less  than  two  calendar  months^  to  intervene 
between  each  call,  according  to  the  form  which  may  -be  prescribed 
by  him,  verified  by  the  oath  or  affirmation  of  the  president  or  cashier, 
and  attested  by  the  signature  of  at  least  two  of  the  directors  thereof, 
which  said  statement  must  contain  a full  abstract  of  the  general 
accounts  of  the  bank,  and  exhibit  in  detail  under  appropriate  heads,  the 
resources  and  liability  thereof,  so  as  to  plainly  show  all  of  the  resources 
and  liabilities,  and  the  amount  and  kind  thereof;  which  said  statement 
shall  be  transmitted  to  the  State  Examiner  within  five  days  after  the 
receipt  of  the  request  or  requisition  therefor  made  by  him;  and  in  such 
condensed  form  as  may  be  required  by  the  State  Examiner  it  must  be 
published  once  in  a newspaper  of  general  circulation  in  the  place  where 
such  bank  is  located,  or  if  there  be  no  newspaper  of  general  circulation 
published  in  such  place,  then  in  one  published  nearest  thereto  within 
the  county,  and  at  the  expense  of  the  bank,  and  such  proof  of  the 
publication  of  such  statement  shall  be  furnished  as  may  be  required 
by  the  State  Examiner.  The  State  Examiner  shall  also  have 
power  to  call  for  special  reports  from  any  particular  bank  whenever  in 
his  judgment  the  same  are  necessary  in  order  to  have  a full  and  complete 
knowledge  of  its  condition. 

Section  3997.  The  directors  of  each  bank  may  semi-annually,  on 
the  first  Monday  of  January  and  July  of  each  year,  declare  a dividend 
of  so  much  of  the  net  profits  of  the  bank  as  they  may  deem  expedient. 
(See  Chapter  112,  page  37.) 

Section  3993.  In  addition  to  the  statement  required  by  the  preceding 
Section,  every  such  bank  shall  report  to  the  State  Examiner  within  ten 
days  after  declaring  any  dividend,  showing  the  amount  of  such  dividend, 
and  the  amount  of  net  earnings  in  excess  of  the  dividend.  Such  state- 
ment shall  be  attested  as  provided  for  in  the  attestation  of  statement 
by  the  preceding  section. 

Section  3999.  The  information  and  showings  made  by  the  reports 
herein  contemplated,  other  than  such  reports  as  are  required  to  be 
published,  shall  be  deemed  for  the  confidential  information  of  the  State 
Bank  Examiner's  office  only,  and  such  information  shall  not  be  imparted 
to  any  persons  who  are  not  officially  associated  in  and  with  the  office 
of  the  State  Bank  Examiner,  and  such  information  shall  be  used  by 
the  State  Bank  Examiner  only  in  the  furtherance  of  his  official  duties. 

Section  4000.  If  any  such  bank  neglects  to  make  out  or  transmit 
the  statements  ~and  proof  of  publication  thereof  required  by  this  Act, 
it  shall  be  subject  to-  a penalty  of  twenty  ($20.00)  dollars  for  each  day 
in  default  after  the  periods  respectively  required  by  this  Act  that  it 
may  delay  to  make  and  transmit  any  such  statement.  And  should  any 
such  bank  delay  for  the  period  of  one  month  beyond  the  period  when 


24 


LAWS  OF  THE  STATE  OF  MONTANA 


the  same  is  required  to  be  made,  to  make  out  and  transmit  the  state- 
ments required  by  this  Act,  or  wilfully  violate  any  provisions  of  this 
Act,  the  directors  shall  be  personally  liable  for  all  debts  of  such  cor- 
poration contracted  previous  to  and  during  the  period  of  such  neglect. 

Section  4001.  Every  officer  or  other  person  authorized  'by  this  Act 
who  wilfully  and  knowingly  makes  any  false  statement  of  facts,  state- 
ment of  account  or  report,  and  every  officer,  agent  or  clerk  of  any  such 
bank  who  wilfully  and  knowingly  makes  any  false  entries  in  the  books 
of  such  bank,  or  knowingly  subscribes  or  exhibits  false  papers  with  the 
intent  to  deceive  any  person  authorized  to  examine  as  to  the  condition 
of  such  bank,  and  every  person  authorized  by  the  provisions  of  this 
Act  to  make  statements  or  reports  who  wilfully  and  knowingly  subscribes 
or  makes  any  false  statement  or  report,  shall  be  deemed  guilty  of 
felony,  and  upon  conviction,  subject  to  imprisonment  at  hard  labor 
in  the  state  prison  for  a term  of  not  less  than  onve  nor  more  than  ten 
years. 

Section  4002.  The  State  Examiner  shall  call  for  a report  from 
every  such  banking  institution  under  the  provisions  of  this  Act  within 
sixty  days  after  its  passage  and  approval. 

Section  4003.  Any  banking  association,  trust  deposit  and  security 
corporation,  or  savings  bank,  organized  under  the  laws  of  Montana, 
miay  be  dissolved  by  the  district  court  of  the  county  where  its  office 
or  principal  place  of  business  is  situated  upon  its  voluntary  application 
for  that  purpose. 

The  application  must  be  in  writing  and  must  set  forth  that  at  a 
meeting  of  the  stockholders  and  members  called  for  that  purpose,  the 
dissolution  of  the  association  was  resolved  upon  by  a two-thirds  vote 
of  all  the  stock,  and  that  all  claims  and  demands  against  the  association 
have  been  satisfied  and  discharged. 

The  application  must  be  signed  by  a majority  of  the  board  of  direc- 
tors or  other  officers  having  the  management  of  the  affairs  of  the 
association,  and  must  be  verified  in  the  same  manner  as  a complaint 
in  a civil  action. 

A verified  copy  of  the  application  shall  be  filed  with  the  State 
Examiner  or  such  other  State  officer  as  is  by  law  authorized  to  examine 
such  associations  within  ten  days  after  the  filing  of  such  application 
with  the  district  court. 

If. the  court  is  satisfied  that  the  application  is  in  conformity  with 
this  Chapter  it  must  order  the  application  to  be  filed  and  the  clerk  to 
give  not  less  than  thirty  nor  more  than  fifty  days’  notice  of  the 
application  by  publication  in  some  newspaper  published  in  the  county. 
At  any  tijpe  before  the  expiration  of  the  time  of  publication  any  person 
may  file  his  objections  to  the  application. 

Before  the  final  hearing  and  determination  of  the  application  the 
State  Examiner  shall  make  a thorough  examination  of  the  affairs  of  such 
association  and  file  a certified  statement  of  such  examination  with  the 
clerk  of  the  court  of  the  county  where  such  application  is  made,  which 
statement  shall  be  a part  of  the  papers  in  the  case.  After  the  time 
publication  has  expired  the  court  may,  upon  five  days'  notice  to  the  per- 


RELATING  TO  BANKS  AND  BANKING  CORPORATIONS. 


25 


sons  who  have  filed  objections,  or  without  further  notice  if  no  objec- 
tions have  been  filed,  proceed  to  hear  and  determine  the  application, 
and  if  all  the  statements  made  therein  are  shown  to  be  true  the  court 
must  declare  the  association  dissolved.  No  stockholder  or  officer  of  such 
association  shall  be  allowed  to  withdraw  from  such  association  or  sur- 
render or  dispose  of  his  shares  of  stock  after  the  filing  or  making  of  such 
application  for  dissolution  and  prior  to  the  final  determination  of  the 
case.  Upon  the  disolution  of  such  association  by  the  district  court, 
the  clerk  of  said  court  shall  forthwith  notify  the  Secretary  of  State  of 
such  dissolution,  by  sending  a copy  of  the  order  of  the  court  and  said 
order  and  notice  shall  be  filed  by  the  Secretary  of  State  with  the  original 
certificate  of  organization. 

The  application  notices  and  proof  of  publication,  objections,  if  any, 
and  declaration  of  dissolution,  constitute  the  judgment  roll,  and  from 
the  judgment,  an  appeal  may  be  taken  in  the  same  manner  as  in  other 
actions. 

1.  Section  4004.  Impairment  of  capital.  Duties  of  State  Examiner. 
Whenever  the  State  Examiner,  after  a full  and  careful  examination  of 
the  affairs  of  any  banking  corporation,  trust  deposit  and  security  com- 
pany or  savings  bank,  organized  under  the  laws  of  Montana,  or  any  for- 
eign corporation  or  branch  thereof  doing  a banking  business  in  Montana, 
shall  find  evidence  of  impairment  or  insolvency,  he  shall  imemdiately 
prepare  and  submit  a statement  of  its  condition  to  the  Governor  and 
Attorney  General,  and  if  the  Governor  and  Attorney  General  are  satisfied, 
from  such  statement  that  such  impairment  or  insolvency  exists,  they 
shall  order  the  State  Bank  Examiner  either  (1)  to  notify  the  bank’s 
stockholders  to  make  good  such  impairment  or  insolvency  in  a specified 
time;  or  (2),  to  immediately  take  charge  of  such  bank  or  trust  company 
and  to  furnish  an  official  bond  for  such  sum  as  they  designate. 

2.  If  so  ordered,  the  State  Bank  Examiner  shall  forthwith  take 
possession  of  the  books,  records,  and  assets,  and  shall  be  authorized 
and  empowered,  and  is  directed  to  take  such  action  as,  in  his  judgment, 
is  best  for  the  protection  of  the  depositors  and  stockholders  of  such 
bank. 

While  in  charge  of  the  State  Bank  Examiner,  the  books,  records  and 
assets  shall  not  be  subject  to  any  levies  or  attachments. 

3.  If  the  stockholders  do  not  make  good  the  impairing  or  insol- 
vency within  the  time  required  after  notification,  the  State  Bank  Exam- 
iner is  authorized  to  take  charge  of  such  bank,  its  property  and  assets, 
upon  direction  of  the  Governor  and  Attorney  General. 

4.  It  appearing  necessary  to  have  a receiver  appointed  for  any  such 
bank  or  banks,  the  State  Examiner  shall  make  full  and  complete  state- 
ment of  account  and  report  to  the  Governor  with  respect  to  the  condition 
of  its  business  and  affairs;  and  thereafter,  should  it  appear  to  the 
Governor  that  application  should  be  made  for  the  appointment  of  a 
receiver,  he  shall  thereupon  direct  the  Atorney  General  to  file  a petition 
in  the  District  Court  of  the  County  in  which  the  bank  is  situated,  asking 
for  the  appointment  of  a receiver,  in  the  name  of  the  State  of  Montana, 
and  such  petition  shall  be  controlling,  and  by  the  court  so  considered 


26 


LAWS  OF  THE  STATE  OF  MONTANA 


and  acted  upon,  even  though  stockholders,  creditors,  or  others,  may  have 
theretofore  filed  applications  for  the  appointment  of  a receiver.  When 
any  such  petition  is  filed  by  the  state,  no  suggestion  shall  be  contained 
therein  as  to  any  particular  person  to  be  appointed  in  such  capacity. 
Receivers  of  all  insolvent  banks  shall  make  reports  to  the  State  Bank 
Examiner  in  the  same  manner  as  is  required  of  other  banks,  at  least 
three  times  each  year,  when  called  upon  to  do  so,  or  at  any  time  when 
requested  by  the  State  Bank  Examiner.  Any  receiver  who  refuses  to 
submit  the  affairs  of  such  bank  to  an  examination  by  the  State  Bank 
Examiner  or  his  assistants,  or  fails  to  make  report  when  called  for  by 
said  officer,  or  who  violates  any  of  the  provisions  of  law  relating  to  exam- 
ination of  banks,  shall  be  subject  to  removal. 

5.  The  receiver  provided  for  in  this  Section  shall  receive  such  com- 
pensation as  shall  be  allowed  by  the  court,  but  in  no  event  to  exceed 
the  fees  allowed  executors  and  administrators  in  administration  of 
estates. 

6.  The  expense  for  travelling,  hotel  bills  and  time  actually  spent, 
incurred  by  the  State  Bank  Examiner’s  office  in  performance  of  the 
duties  imposed  by  this  Section,  shall  be  paid  in  full  by  the  bank  to  the 
State  Treasurer  and  by  him  credited  to  the  State  Examiner’s  fund. 
(Chapter  141,  Session  Laws  of  1909.) 

Approved  March  11,  1909. 

Section  4005.  Any  banking  association,  trust  deposit  and  security 
corporation  or  savings  bank,  organized  under  the  laws  of  this  state,  may 
increase  its  capital  stock,  but  no  increase  shall  be  valid  until  the  whole 
amount  of  such  increase  is  paid  in  in  cash,  and  such  payment  certified 
under  oath  by  the  president  or  cashier,  to  the  State  Auditor,  (now  State 
Examiner,  see  Section  4009),  who  shall  give  his  certificate  specifying 
the  amount  of  such  increase/ with  his  approval  thereof,  and  that  it  has 
been  duly  paid  in  as  a part  of  the  capital  of  such  corporation.  (See  also 
Section  3918,  page  9.) 

Section  4006.  Any  banking  association,  trust  deposit  and  security 
company  or  savings  bank  may  reduce  its  capital  stock  to  any  sum  not 
below  the  amount  required  by  law  to  authorize  its  formation,  by  a vote 
of  its  stockholders  owning  two-thirds  of  its  stock,  but  no  reduction 
shall  be  made  until  the  amount  of  the  proposed  reduction  is  reported 
to  the  State  Examiner  and  his  approval  thereof  obtained  in  writing, 
and  until  notice  of  such  reduction  shall  be  given  by  publication  for  at 
least  sixty  days  in  some  newspaper  of  general  circulation,  printed  and 
published  in  the  county  wherein  such  corporation  is  doing  business, 
and  provided  further  that  no  reduction  shall  be  construed  as  affecting 
the  liability  of  shareholders  for  any  debts  of  the  association  incurred 
prior  to  such  reduction. 

Section  4007.  Whenever  any  banking  corporation,  trust  deposit  and 
security  company  or  savings  banks,  organized  under  the  laws  of  this 
State,  shall  be  insolvent  or  in  impaired  condition  in  the  manner 
described  and  set  forth  in  Section  4004  of  this  Act,  such  banking  cor- 
poration, trust  deposit  and  security  company  or  savings  bank  shall 
not  accept  or  receive  on  deposit  any  money,  bank  bills  or  notes,  United 


RELATING  TO  BANKS  AND  BANKING  CORPORATIONS. 


27 


States  Treasury  notes  or  currency,  or  other  notes,  bills  or  drafts 
circulating  as  money  or  currency,  or  transact  any  other  business  in  con- 
nection with  its  operation,  except  as  trustee  for  the  depositors  and 
parties  transacting  business  with  them,  and  it  or  they  shall  keep  all 
such  deposits  of  money,  bills  or  notes,  or  United  States  Treasury  notes 
or  currency,  or  other  notes,  bills  or  drafts,  circulating  as  money  or  cur- 
rency, separate  and  apart  from  the  general  assets  of  the  bank,  from 
and  after  the  date  such  notice  is  given  to  its  officers  and  stockholders, 
as  set  forth  in  Section  4004  of.  this  Act,  and  which  trust  deposits  shall  be 
kept  separate  and  apart  from  the  general  assets  of  the  bank  until  such 
impairment  or  insolvency  has  been  made  good,  when  such  deposits  re- 
ceived in  “trust”  may  be  transferred  to  the  general  assets  of  the  bank 
on,  and  by  written  consent  of  the  State  Examiner;  and  further  pro- 
vided that,  in  the  event  of  such  impairment  or  insolvency  be  not  made 
good  or  removed  within  the  period  stated  by  the  notice  required  as  set 
forth  in  Section  4004  of  this  Act,  then  any  and  all  such  “trust”  deposits 
shall  be  returned  to  the  depositors  making  them;  and  further  provided, 
that  any  officer,  director,  cashier,  manager,  member,  party  or  managing 
partner  thereof  who  shall  knowingly  accept  or  receive,  be  accessory  to 
or  permit  or  connive  at  the  receiving  or  accepting  of  such  trust  deposits, 
except  in  the  manner  hereinbefore  set  forth  in  this  Section,  shall  be 
deemed  guilty  of  a felony,  and  upon  conviction  thereof  shall  be  pun- 
ished by  a fine  not  exceeding  ten  thousand  dolars,  or  by  imprisonment 
in  the  state  penitentiary  not  exceeding  five  years,  or  by  both  fine  and 
imprisonment  as  aforesaid. 

Section  4008.  Any  officer,  agent  or  clerk  of  any  banking  corporation, 
trust  deposit  and  security  corporation  or  savings  bank,  organized  under 
the  laws  of  this  State,  who  wilfully  and  knowingly  receives  money,  bank 
bills,  notes  of  the  United  States  or  currency,  or  other  notes,  bills  or 
drafts  circulating  as  money  or  currency,  except  in  the  manner  herein- 
before set  forth  in  Section  4007  of  this  Act,  or  who  subscribes  or  makes 
any  false  statement  or  entries  in  the  books  of  such  association  or 
corporation,  or  knowingly  subscribes  or  exhibits  any  false  paper  with 
the  intent  to  deceive  any  person  authorized  to  examine  as  to  the  con- 
dition of  such  association  or  corporation,  or  willfully  subscribes  or  makes 
false  reports,  shall  be  subject  to  imprisonment  at  hard  labor  in  the 
penitentiary  for  a term  not  exceeding  five  years. 

Section  4009.  That  all  duties  now  required  to  be  performed  by,  and 
all  responsibilities  now  imposed  upon  the  State  Auditor,  under  the  laws 
regulating  the  business  of  banking,  shall  hereafter  be  performed  by  the 
State  Examiner,  under  title  of  State  Bank  Examiner,  and  all  reports  and 
papers  now  on  file  in  the  State  Auditor’s  office  pertaining  to  banks 
are  hereby  transferred  to  the  custody  of  the  State  Examiner. 

Section  4010.  Every  bank  shall  keep  on  hand  at  all  times  at  least 
fifteen  per  cent  of  its  total  deposits,  of  which  such  portion  as  the  board 
of  directors  may  determine  may  be  on  deposit  in  banks  in  cities  of  the 
first  and  second  class  approved  by  the  State  Examiner  as  reserve 
banks,  except  in  the  case  of  banks  which  shall  be  approved  by  the  State 
Examiner,  as  reserve  banks,  which  banks  shall  at  all  times  keep  on 


28 


LAWS  OF  THE  STATE  OF  MONTANA 


hand  at  least  twenty-five  per  cent  of  their  total  deposits  in  lawful  money 
or  on  deposit  in  banks  subject  to  the  approval  of  the  State  Examiner 
as  reserve  banks. 

Section  4011.  The  total  liabilities  of  any  person,  co-partnership  or 
corporation,  to  any  bank,  for  money  borrowed,  including  in  the  liabilities 
of  a co-partnership,  the  liabilities  of  the  several  members  thereof,  shall 
at  no  time  exceed  twenty  per  cent  of  the  amount  of  capital,  surplus  of 
such  bank;  but  the  discounting  of  bills  o;f  exchange  drawn  in  good  faith 
against  actually  existing  values,  and  discounting  of  commercial  paper 
or  business  paper  actually  owned  by  the  person  negotiating  the  same 
and  loans  made  on  warehouse  receipts  and  bills  of  lading  representing, 
actual  value,  shall  not  be  considered  as  money  borrowed. 

Section  4012.  The  stockholders  of  every  corporation  formed  under 
this  Chapter,  or  which  may  avail  itself  of  its  provisions,  shall  be  severally 
and  individually  liable,  equally  and  rateable,  and  not  one  for  the  other, 
for  all  contracts,  debts  and  engagements  of  such  corporation  to  the 
extent  of  the  amount  of  their  stock  therein,  at  the  par  value  thereof, 
in  addition  to  the  amount  invested  in  such  shares. 

Section  4013.  All  real  estate  owned  by  any  bank  shall  be  taxed 
to  the  bank  as  other  real  estate  is  taxed  in  the  county  where  the  real 
estate  is  situated  and  the  residue  of  its  property  being  shares  of  stock 
in  said  bank  shall  be  reduced  to  a cash  value  and  assessed  and  taxed 
to  the  individual  shareholder  in  the  identical  manner  that  other  personal 
property  is  assessed  in  Montana,  having  in  view  that  the  assessment 
thereof  for  the  taxation  shall  not  be  at  a greater  proportion  to  face 
value  than  is  the  assessment  upon  other  classes  of  personal  property. 

Section  4014.  Whenever  under  the  provisions  of  this  law  or  of  any 
Taw  now  in  existence  relating  to  banks  it  is  unlawful  to  do  or  not  to 
do  anything,  and  the  penalty  is  not  prescribed,  then  such  act  shall  be 
a misdemeanor  and  be  punished  as  provided  by  the  law. 

Section  4015.  The  provisions  of  this  Act  shall  apply  only  to  banking 
corporations  organized  under  the  laws  of  this  State. 

ANNUAL  FEE  FOR  STATE  EXAMINER’S  FUND. 

Section  215.  That  for  the  purpose  of  the  just  distribution  of  the 
expenses  incurred  in  pursuance  of  this  title,  there  is  created  a fund 
designated  “State  Examiner  Fund.”  For  the  credit  of  said  fund  each 
county  of  the  State  shall  pay  to  the  State  Treasurer  on  or  before  the 
first  day  of  July  of  each  year,  according  to  its  classification  as  follows  r 


Counties  of  first  class  $750.00  each 

Counties  of  second  class  350.00  each 

Counties  of  third  class  250.00  each 

Counties  of  fourth  class  200.00  each 

Counties  of  fifth  class  150.00  each 

Counties  of  sixth  class  125.00  each 

Counties  of  seventh  and  eighth  class  100.00  each 


Any  counties  hereafter  created  are  to  be  deemed  counties  of  seventh 
class  until  an  assessment  of  such  county  has  been  made  and  the  class 
thereof  determined,  and  for  the  maintenance  of  this  fund  for  the  years 


RELATING  TO  BANKS  AND  BANKING  CORPORATIONS 


29 


1907  and  1908,  if  there  is  no  subsequent  legislation  hereon,  each  county 
shall  pay  on  its  present  classification  and  thereafter  on  the  classification 
as  made  by  law. 

Each  bank,  banking  corporation,  savings  bank,  investment  and  loan 
company  subject  to  supervision  of  the  State  Examiner  under  the  laws 
of  this  State  shall  pay  to  the  State  Treasurer  for  the  State  Examiner’s 
Fund,  on  or  before  the  first  day  of  November  of  each  year,  a fee  accord- 
ing to  its  capitalization  at  the  following  rates: 

Capital  stock  up  to  $25,000,  inclusive,  $50.00;  capital  stock  over 
$25,000  and  less  than  $50,000,  fee  $75.00;  capital  stock  from  $50,000  to 
$75,000  inclusive,  fee  $100.00;  capital  stock  over  $75,000  and  to  $100,000 
inclusive,  fee  $150.00;  capital  stock  over  $100,000  and  to  $200,000  inclusive, 
fee  $200.00;  capital  stock  over  $200,0T)0  and  less  than  $300,000,  fee  $250.00; 
capital  stock  $300,000  and  over,  fee  $300.00. 

Each  building  and  loan  association  subject  to  examination  by  the 
State  Examiner  shall  pay  the  State  Treasurer  on  or  before  the  first  day 
of  November  of  each  year  a fee  of  one-twentieth  of  one  per  cent  of  its 
assets  as  shown  by  its  last  annual  statement  provided  that  no  examina- 
tion fee  shall  be  less  than  twenty  nor  more  than  fifty  dollars  for  a 
domestic  association,  nor  more  than  two  hundred  dollars  for  a foreign 
corporation. 

'Section  21G.  Any  bank,  banking  corporation,  savings  bank,  building 
and  loan  association,  investment  and  loan  company  liable  for  a fee 
under  Section  215  of  this  Act,  that  shall  fail  or  neglect  to  pay  the  State 
Treasurer  within  ten  days  after  the  first  dav  of  November  of  each  year 
the  sum  due  as  specified  in  the  section  next  preceding  shall  forfeit  to 
the  state  ten  dollars  ($10.00)  for  every  day  it  shall  so  fail  or  neglect, 
to  be  sued  for  and  recovered  in  the  name  of  the  State  by  the  County 
Attorney  of  the  county  in  which  the  business  of  such  banking  association 
or  corporation  shall  be  located,  and  when  so  recovered,  the  amount 
shall  be  paid  into1  the  treasury  of  such  county  for  the  use  of  common 
schools  therein. 

EXTENSION  OF  CORPORATE  EXISTENCE. 

Section  3907.  Every  corporation  formed  for  a period  of  less  than 
twenty  years  may  at  any  time  prior  to  the  expiration  of  the  term  of 
its  corporate  existence  extend'  such  term  to  a period  not  exceeding  twenty 
years  from  its  formation.  And  every  corporation  may  extend  the  period 
of  its  existence  for  an  additional  term  not  exceeding  twenty  years, 
after  the  expiration  of  the  period  for  which  it  was  formed,  as  follows: 
Such  extension  may  be  made  at  any  meeting  of  the  stockholders  or 
members  called  by  the  directors  expressly  for  considering  the  subject 
if  voted  by  stockholders  representing  two-thirds  of  the  capital  stock, 
or  by  two-thirds  of  the  members,  or  may  be  made  upon  the  written 
assent  of  that  number  of  stockholders  or  members.  A certificate  of 
the  proceedings  of  the  meeting  upon  such  vote,  or  upon  such  assent, 
shall  be  signed  by  the  chairman  and  secretary  of  the  meeting  and  a 
majority  of  the  directors,  and  be  filed  in  the  office  of  the  County  Clerk 
where  the  original  articles  of  incorporation  were  filed,  and  a certified 


30 


LAWS  OF  THE  STATE  OF  MONTANA 


copy  thereof  in  the  office  of  the  Secretary  of  State,  and  thereupon  the 
term  of  the  corporation  shall  be  extended  for  the  specified  period. 

Section  3908.  The  provisions  of  this  Title  are  applicable  to  every 
corporation  unless  suich  corporation  is  excepted  from  its  operation,  or 
unless  a special  provision  is  made  in  relation  thereto  inconsistent  with 
some  provisions  in  this  Title,  in  which  case  the  .special  provision 
prevails. 


FOREIGN  BANKING  CORPORATIONS. 


Section  3976. 
• 3977. 

3978. 

3979. 

3980. 

3981. 

3982. 

3983. 

3984. 

3985. 


398G. 

3987. 

3988., 

3989. 

3990. 

3991. 


Right  to  transact  business. 

Branch  bank,  how  established. 

Certificate  of  State  Auditor. 

Reserve  fund. 

Reports  to  State  Examiner. 

Semi-annual  reports. 

Officers  prohibited  from  certifying  checks  without  deposits. 
Failure  to  make  statements. 

Limitation  on  liabilities. 

Capital  surplus  or  deposits  must  not  be  withdrawn  from 
state. 

Duties  of  State  Examiner. 

Certificate  may  be  cancelled  for  impaired  capital. 
Misstatement  of  amount  of  capital  prohibited. 

Assets  of  bank  not  liable  for  redemption  of  circulating 
notes  or  bills. 

Penalties  for  false  statements,  entries  or  reports. 
Penalties  for  violation  of  this  Act. 


Section  3976.  No  foreign  corporation  or  joint  stock  company  shall 
keep  any  office  for  the  purpose  of  receiving  deposits  or  discounting  notes 
or  bills,  or  buying  and  selling  exchange,  coin,  or  bullion,  or  shall  do  any 
banking  business  whatever,  within  this  State,  except  as  hereinafter 
provided. 

Every  corporation  or  joint  stock  company  not  now  or  hereaftei 
created,  organized  and  existing  under  the  laws  of  Montana,  shall  bo 
deemed  a foreign  corporation  or  joint  stock  company;  provided,  always, 
that  this  Act  shall  not  apply  to  any  National  Banking  Association 
organized  under  authority  of  the  Congress  of  the  United  States. 

Section  3977.  Any  foreign  corporation  or  joint  stock  company  may 
establish  and  maintain  a branch  bank  in  any  city,  town  or  village  in 
this  State,  upon  complying  with  the  following  requirments,  and  ’obtaining 
a certificate  fromi  the  State  Auditor  (State  Examiner)  as  hereinafter 
provided;  that  is  to  say,  such  foreign  corporation  or  joint  stock  company 
shall  set  aside  and  pay  into  the  treasury  of  such  branch  bank  a sum 
of  money  at  least  equal  to  the  amount  of  capital  stock  required  for 
a national  bank  at  the  place  where  such  branch  bank  may  be  located, 
w’hich  payment  shall  be  certified  under  oath  to  the  State  Auditor  (State 
Examiner)  by  the  local  manager  of  such  bank. 


RELATING  TO  BANKS  AND  BANKING  CORPORATIONS. 


3i 


Section  3978.  The  State  Auditor  (State  Examiner)  shall,  upon  com- 
pliance with  the  foregoing  requirements,  issue  a certificate  to  such 
branch  bank,  stating  that  it  has  complied  with  the  provisions  of  this 
Act  and  is  entitled  to  do  a banking  business  at  the  place  designated 
in  such  certificate.  A new  certificate  shall  be  issued,  by  the  State 
Auditor  (State  Etxaminer),  on  the  1st  day  of  January  in  each  year; 
provided,  that  the  capital  herein  required  shall  be  unimpaired,  and  the 
other  provisions  of  this  Act  have  been  complied  with. 

Section  3979.  Every  such  branch  bank  of  any  foreign  corporation 
or  joint  stock  company  doing  a banking  business  in  this  State  shall,  at 
all  times,  have  on  hand  in  such  branch  bank,  in  lawful  money  of  the 
United  States,  an  amount  equal  to  at  least  ten  per  centum  (10  per  cent) 
of  the  aggregate  amount  of  its  deposits  of  all  kinds.  Whenever  the  said 
reserve  fund  shall  be  below  twenty  per  centum  (20  per  cent)  of  such 
deposits,  such  branch  bank  shall  not  increase  its  liabilities  by  making 
any  new  loans  or  discounts  otherwise  than  by  discounting  or  purchas- 
ing bills  of  exchange  payable  at  sight,  nor  make  any  dividend  of  its 
profits  until  the  required  proportion  between  the  aggregate  amount  of 
its  said  deposits  and  its  lawful  money  of  the  United  States  has  been 
restored.  The  State  Examiner  may  notify  such  branch  bank,  whose 
lawful  money  reserve  shall  fall  below  the  amount  required  to  be  kept 
on  hand,  to  mfake  good  such  reserve,  and,  if  such  bank  shall  fail  for 
thirty  days  thereafter  so  to  make  good  its  reserve  of  lawful  money,  the 
State  Auditor  (State  Examiner)  shall  thereupon  cancel  the  certificate 
theretofore  issued  by  him  to  such  branch  bank. 

Section  3980.  EVery  such  branch  bank  of  any  foreign  corporation 
or  joint  stock  company  shall  make,  to  the  State  Examiner,  not  less  than 
five  reports  during  each  year,  all  at  his  call,  not  less  than  two  calendar 
months  to  intervene  between  each  call,  according  to  the  form  which  may 
be  prescribed  by  him,  verified  by  the  oath  or  affirmation  of  the  resident 
manager  or  cashier  of  such  branch  bank,  which  said  statement  must 
contain  a full  abstract  of  the  general  accounts  of  the  bank,  and  exhibit 
in  detail  under  appropriate  heads,  the  resources  and  liabilities  thereof, 
so  as  to  plainly  show  all  of  the  resources  and  liabilities,  and  the  amount 
and  kind  thereof,  which  said  statement  shall  be  transmitted  to  the 
State  Examiner  within  five  days  after  the  receipt  of  the  request  or 
requisition  therefor  made  by  him,  and  in  such  condensed  form  as  may 
be  required  by  the  State  Examiner.  It  must  be  published  once  in  a 
newspaper  of  general  circulation  in  the  place  where  such  bank  is 
located,  or,  if  there  be  no  newspaper  of  general  circulation  published  in 
such  place,  then  in  one  published  nearest  thereto  within  the  county  and 
at  the  expense  of  the  bank,  and  such  proof  of  the  publication  of  such 
statement  shall  be  furnished  as  may  be  required  by  the  State  Examiner. 
The  State  Examiner  shall  also  have  power  to  call  for  special  reports 
from  any  branch  bank,  whenever  iA'  his  judgment  the  same  are  necessary 
in  order  to  have  a full  and  complete  knowledge  of  its  conditions. 

Section  3981.  In  addition  to  the  reports  required  by  the  preceding 
section,  every  such  branch  bank  of  any  foreign  corporation  or  joint 
stock  company  shall  report  to  the  State  Examiner,  within  ten  days 


32 


LAWS  OF  THE  STATE  OF  MONTANA 


after  declaring  any  dividend,  the  amount  of  such  dividend  and  the 
amount  of  net  earning  in  excess  of  such  dividend.  It  shall  also  make 
a semi-annual  report  on  the  30tli  day  of  June  and  the  31st  day  of 
December  of  each  year  in  such  form  as  shall  ibe  prescribed  by  the  State 
Examiner  showing  the  amount  of  the  earnings  of  such  branch  bank  and 
the  amount  of  the  dividends,  if  any,  for  the  preceding  six  months.  Such 
report  shall  be  attested  by  the  oath  of  the  resident  manager  or  cashier 
of  such  bank. 

Section  3982.  It  shall  be  unlawful  for  any  officer,  clerk  or  agent  of 
any  branch  bank  to  certify  any  chdck  drawn  upon  the  same,  un- 
less the  person  or  company  drawing  the  check  has  on  deposit  with 
such  branch  bank,  at  the  time  such  check  is  certified,  an  amount  of 
money  equal  to  the  amount  certified  in  such  check.  If  any  such  officer, 
clerk  or  agent  shall  resort  to  any  device  or  receive  any  fictitious  obli- 
gation, direct  or  collateral,  in  order  to  evade  the  provisions  feereof,  or 
if  he  shall  certify  checks  before  the  amount  thereof  shall  have  been 
regularly  entered  to  the  credit  of  the  dealer  upon  the  books  of  such 
branch  bank,  every  such  act  shall  be  deemed  a violation  of  this  Sec- 
tion and  be  subject  to  the  penalty  hereinafter  prescribed. 

Any  check  so  certified  by  duly  authorized  officers  shall,  however,  be 
a good  and  valid  obligation  against  such  bank. 

Section  3983.  If  any  such  bank  neglects  to  make  out  or  transmit 
the  statements  and  proof  of  publication  thereof,  required  by  this  Act, 
it  shall  be  subject  to  a penalty  of  twenty  dollars  for  each  day  in  default 
after  the  periods  respectively  required  by  this  Act  that  it  may  delay  to 
make  and  transmit  such  statement,  and  should  any  such  bank  delay 
for  a period  of  one  month  beyond  the  period  when  the  same  is 
required  to  be  made  to  make  out  and  transmit  the  statements  required 
to  -be  made  by  this  Act,  or  willfully  violate  any  provisions  of  this  Act, 
then  it  shall  be  the  duty  of  the  State  Auditor,  (State  Examiner),  to  can- 
cel any  outstanding  certificate  issued  by  him. 

iSection  3984.  The  total  liabilities  to  any  such  branch  bank  of  any 
person  or  of  any  company,  corporation  or  firm  for  money  borrowed 
including,  in  liabilities  of  a company  or  firm,  the  liabilities  of  the 
several  members  thereof  shall  at  no  time  exceed  one-tenth  of  the  amount 
of  the  capital  actually  paid  in  and  in  use  in  such  branch  bank.  But 
the  discount  of  bills  of  exchange  drawn  in  good  faith  against  exist- 
ing values,  and  the  discount  of  business  or  commercial  paper  actually 
owned  by  the  person  negotiating  the  same,  shall  not  be  considered  as 
money  borrowed. 

Section  3985.  Neither  any  portion  of  the  capital  requered  by  this  Act, 
nor  of  the  surplus  or  deposits  of  such  branch  bank  shall  be  withdrawn 
therefrom  by  said  foreign  corporation  or  joint  stock  company  and  kept 
or  used  in  any  other  branch  bank  or  such  corporation  or  joint  stock 
company,  except  so  far  as  shall  be  f&cessary  and  proper  in  the  ordinary 
course  of  the  banking  business  of  the  local  branch  bank. 

Section  3986.  The  State  Examiner,  as  often  as  he  shall  deem  it 
proper  and  necessary,  and  at  least  once  in  each  year,  shall,  in  person 
or  by  suitable  assistant  or  assistants,  make  an  examiantion  of  the 


RELATING  TO  BANKS  AND  BANKING  CORPORATIONS. 


33 


affairs  of  such  branch  bank,  and  shall  have  power  to  make  a thorough 
investigation  into  all  the  affairs  of  such  branch  bank  and,  in  do  ing  so, 
examine  any  of  the  officers,  agents  or  employees  thereof  on  oath,  and 
shall  make  a full  and -detailed  report  of  the  condition  of  such  branch 
bank  to  be  kept  in  the  files  of  his  office.  And  for  the  purpose  of  con- 
tributing to  the  expense  and  maintenance  of  the  State  Examiner’s  office, 
every  such  branch  bank  shall  pay  into  the  state  treasury,  for  the  “State 
Examiner’s  Fund,”  on  or  before  the  first  day  of  November  of  each  year, 
a fee  according  to  the  capitalization  of  such  branch  bank,  at  the  follow- 
ing rate:  For  a capital  stock  of  from  twenty-five  to  fifty  thousand 

dollars,  inclusive,  a fee  of  fifty  ($50.00)  dollars;  for  a capital  stock  of 
over  fifty  thousand  dollars  and  up  to  seventy-five  thousand  dollars,  in- 
clusive, a fee  of  seventy-five  ($75.00)  dollars;  for  a capital  stock  over 
seventy-five  thousand  dollars,  up  to  one  hundred  thousand  dollars  or 
more,  a fee  of  one  hundred  ($100.00)  dollars. 

Section  3987.  Whenever  it  shall  appear,  from  any  examination  auth- 
orized by  this  Act,  that  the  capital  of  such  branch  bank  has  become  im- 
paired, or  that  any  portion  thereof  has  been  withdrawn  from  said 
branch  bank  by  such  foreign  corporation  or  joint  stock  company,  then  it 
shall  be  the  duty  of  the  State  Auditor,  (State  Examiner),  to  cancel 
any  outstanding  certificate  issued  by  him. 

Section  3988.  No  such  branch  bank  of  any  foreign  corporation  or 
joint  stock  company,  doing  a banking  business  in  this  State,  shall 
make  use  of  or  circulate  any  letter  heads,  bill  heads,  blank  notes,  blank 
receipts,  blank  check  books,  certificates  or  circulars  wherein  a greater 
amount  of  capital  is  claimed  than  the  actual  capital  of  such  branch  bank, 
nor  shall  it  otherwise,  in  any  manner,  advertise  or  set  forth  any  such 
claim. 

Section  3989.  No  portion  of  the  capital,  surplus,  deposits  or  other 
assets  of  a branch  bank  of  any  foreign  corporation  or  joint  stock  com- 
pany, doing  a banking  business  within  this  State,  shall  be  liable  for  the 
redemption  of  any  circulating  notes  or  bills  of  such  foreign  corporation 
or  joint  stock  company,  nor  for  any  other  liabilities  thereof,  whatso- 
ever except  for  those  arising  out  of  the  business  of  such  branch  bank. 

Section  3990.  Every  officer,  or  other  person  mentioned  and  author- 
ized by  this  Act,  who  knowingly  makes  any  false  statement  of  facts, 
statement  or  report,  and  every  officer,  agent  or  clerk  of  any  such  branch 
bank  who  willfully  and  knowingly  makes  any  false  entries  in  the  books 
of  such  branch  bank,  or  knowingly  subscribes  or  exhibits  false  papers 
with  the  intent  to  deceive  any  person  authorized  to  examine  as  to  the 
condition  of  such  branch  bank,  and  every  person  authorized  by  the  pro- 
visions of  this  Act,  to  make  statements  or  reports  who  willfully  and 
knowingly  subscribes  or  makes  any  false  statement  or  report,  shall  be 
deemed  guilty  of  felony,  and  upon  conviction,  subject  to  imprisonment 
at  hard  labor  in  the  state  prison,  for  a term  of  not  less  than  one  year,  nor 
more  than  ten  years,  for  each  offense. 

Section  3991.  In  addition  to  the  penalties  and  punishment  recited 
in  the  previous  Sections  of  this  Act,  every  foreign  corporation  or  joint 
stock  company,  and  every  officer,  agent  or  employee  thereof,  violating 


34 


LAWS  OF  THE  STATE  OF  MONTANA 


any  of  the  provisions  of  this  Act,  shall,  in  addition  to  the  penalties  and 
punishments  heretofore  provided  in  this  Act,  forfeit  and  pay  to  the  State 
of  Montana  the  sum  of  one  thousand  ($1000.00)  dollars  for  each  viola- 
tion. Such  forfeiture  may  be  recovered  in  an  action  by  the  Attorney 
General,  in  the  name  of  the  State  of  Montana,  brought  in  the  District 
Court  of  the  county  where  the  branch  bank  shall  be  located. 

Approved  March  7,  1907. 

CHAPTER  109. 

“An  Act  to  make  Foreign  Corporations  and  Joint  Stock  Companies, 
Corporations  and  Joint  Stock  Companies  of  this  State  for  the  pur- 
poses of  Jurisdiction  and  to  make  the  Stocks  and  Shares  of  such 
Corporations  and  Joint  Stock  Companies  Subject  to  Attachment 
the  same  as  the  Stocks  and  Shares  of  Domestic  Corporations  are 
now  Subject  to  Attachment  under  the  Laws  of  this  State.” 

Be  it  enacted  by  the  Legislative  Assembly  of  the  State  of  Montana: 

Section  1.  All  foriegn  corporations  or  joint  stock  companies,  except 
foreign  insurance  companies  and  corporations  otherwise  provided  for, 
organized  under  the  laws  of  any  other  state  or  territory  of  the  United 
States,  or,  of  the  United  States,  or  of  any  foreign  government,  and  doing 
business  in  this  State,  or,  which  may  hereafter  engage  in  business  in 
this  State,  shall  be  deemed  and  taken  to  be  corporations  of  this  State 
for  the  purposes  of  jurisdiction,  and  shall  be  subject  to  the  jurisdiction 
of  the  courts  of  this  State,  and  may  sue  and  be  sued  therein  in  the  mode 
and  manner  that  is,  or,  may  be  by  law  directed  in  the  case  of  corpora- 
tions created  or  organized  under  the  laws  of  this  State. 

Section  2.  The  stocks  or  shares  of  such  foreign  corporations  and 
joint  stock  companies,  doing  business  in  this  State,  shall  be  subject  to 
attachment  in  the  same  manner  as  now  provided  by  law  in  the  case  of 
domestic  corporations. 

Section  3.  All  Acts  and  parts  of  Acts  in  conflict  with  this  Act  are 
hereby  repealed. 

Section  4.  This  Act  shall  take  effect  from  and  after  its  passage  and 
approval. 

Approved  March  8,  1909. 

CHAPTER  37. 

An  Act  concerning  the  payment  of  deposits  in  banks  in  trust. 

Be  it  enacted  by  the  Legislative  Assembly  of  the  State  of  Montana. 

Section  1.  Whenever  any  deposit  shall  be  made  in  any  bank,  savings 
bank,  banking  institution  or  trust  company,  by  any  person  in  trust  for 
another,  and  no  other  or  further  notice  of  -the  existence  and  terms  of 
a legal  and  valid  trust  shall  have  been  given  in  writing  to  the  bank,  in 
the  event  of  the  death  of  the  trustee,  the  same,  or  any  part  thereof, 
together  with  the  dividends  or  interest  thereon,  may  be  paid  to  the  person 
for  whom  said  deposit  was  made. 

Section  2.  This  Act  shall  take  effect  immediately. 

Section  3.  All  Acts  or  parts  of  Acts  in  conflict  with  the  provisions 
of  this  Act  are  hereby  repealed. 

Approved  February  27,  1909. 


RELATING  TO  BANKS  AND  BANKING  CORPORATIONS. 


35 


CHAPTER  41. 

An  Act  relating  to  banks  and  banking;  providing  for  a conversion  from 
a State  to  a National  bank ; and  surrender  of  its  charter  as  a 
State  bank  and  transfer  of  its  property;  providing  for  an  increase 
or  decrease  in  the  capital  stock  of  such  a bank;  providing  for  a can- 
version  from  a National  to  a State  bank. 

Be  it  enacted  by  the  Legislative  Assembly  of  the  State  of  Montana. 

Section  1.  Change  from  State  to  National  Bank.  Any  bank  may 
become  a corporation  for  the  purpose  of  carrying  on  the  business  of 
banking  within  this  State  pursuant  to  the  provisions  of  the  Act  of 
Congress  “to  provide  a national  currency  secured  by  a pledge  of  United 
States  stocks,  and  to  provide  for  the  circulation  and  redemption  thereof,” 
approved  June  3,  1864,  and  of  Title  52  of  the  Revised  Statutes  of  the 
United  States,  whenever  stockholders  owning  two-thirds  of  the  stock 
of  such  bank  shall  have  voted  to  become  such  corporation,  or  have 
executed  a written  consent  authorizing  its  directors  to  make  the  certifi- 
cate required  therefor  by  the  laws  of  the  United  States,  or  whenever 
a majority  of  the  directors  of  such  bank,  having  been  authorized  in 
their  discretion  to  make  the  change,  shall,  by  a vote  of  such  majority, 
decide  to  become  such  corporation;  and  the  cashier  of  such  bank  shall 
publish  notice  thereof  for  thirty  days  in  such  newspaper  as  the  directors 
may  select,  and'  send  a like  printed  notice  by  mail  or  otherwise  to  all 
non-voting  or  dissenting  stockholders,  and  notify  the  State  Bank 
Examiner  of  this  State  that  such  bank  has  decided  to  become  a corpora- 
tion under  the  laws  of  the  United  States. 

Section  2.  When  Deemed  to  Have  Surrendered  Its  Charter.  Any 
such  bank  which  will  become  a corporation  for  carrying  on  the  business 
of  banking  under  the  laws  of  the  United  States  shall  cease  to  be  a corpora- 
tion under  the  laws  of  this  State,  except  that  for  the  term  of  three  years 
thereafter,  its  corporate  existence  shall  be  deemed  to  continue  for  the 
purpose  of  prosecuting  and  defending  suits  by  and  against  it,  and  of 
enabling  it  to  close  its  concerns,  and  to  dispose  of  and  convey  its 
property.  The  members  of  the  board  of  directors  last  in  office,  when 
such  corporation  shall  have  ^become  a corporation  under  the  laws  of 
the  United  States,  shall  continue  to  be  the  board  of  directors,  of  the 
new  corporation,  with  power  to  take  all  necessary  measures  to  carry 
out  and  perfect  such  organization  by  signing  the  articles  of  association 
and  the  organization  certificate,  and  adopting  such  regulations  as  may 
be  just  and  proper  and  not  inconsistent  with  the  acts  of  Congress  in 
relation  thereto.  Such  change  from  a State  to  a National  bank  corpora- 
tion shall  not  release  any  such  bank  from  its  obligations  to  pay  and 
discharge  all  the  liabilities  created  by  law  or  incurred  by  it  before 
becoming  a National  bank  corporation,  or  any  tax  imposed  by  the 
laws  of  this  State  up  to  the  date  of  its  becoming  such  National  bank 
corporation,  in  proportion  to  the  time  which  lias  elapsed  since  the  next 
preceding  payment  thereof. 

Section  3.  Reduction  of  Capital  Stock  in  Such  Cases.  The  director 
of  such  new  corporation  may  reduce  the  capital  stock  of  the  bank  to 
its  par  value  by  dividing  the  surplus  among  its  stockholders,  or  may 


36  LAWS  OF  THE  STATE  OF  MONTANA 

retain  such  portion  oif  such  surplus  as  they  may  deem  necessary;  and 
in  case  of  an  increase  of  the  capital  stock  under  the  provisions  of  the 

Acts  of  Congress,  may  charge  the  shares  of  such  increased  capital  stock 

with  a like  amount,  to  place  the  whole  of  such  capital  stock  on  an 
equality;  and  may  award1  such  new  stock,  or  such  proportion  or  fractional 
parts  thereof,  to  such  persons  as  they  shall  determine  are  entitled 
thereto,  and  as  are  provided  in  their  articles  of  association  and  in  the 
acts  of  Congress;  but  new  directors  may  be  chosen  at  such  time  and 
in  the  manner  provided  in  the  articles  of  association  and  in  the  acts 
of  Congress. 

Section  4.  Certificate  of  Change.  When  any  such  bank  has  decided 

to  become  a corporation  under  the  laws  of  the  United  States,  thO 

directors  shail  immediately  thereafter  execute  and  transmit  to  the 
Comptroller  of  the  Currency  the  proper  certificate  and  other  instruments 
for  its  conversion  into  a National  bank  corporation  under  the  laws  of 
the  United  States.  When  any  such  bank  shall  have  become  authorized  bo 
commence  the  business  of  banking  under  the  laws  of  the  United  States, 
all  the  property  of  such  bank  shall  immediately,  by  act  of  law,  and 
without  any  conveyance  or  transfer,  be  vested  in  and  become  the 
(property  of  the  National  bank  corporation,  into  which  such  bank  shall 
have  been  converted. 

Section  5.  National  Banks  May  Reorganize  as  State  Banks.  Any 
National  bank  authorized  to  dissolve,  and  which  shall  have  taken  the 
necessary  steps  to  effect  dissolution,  may  reorganize  as  a State  bank 
upon  the  consent  in  writing  of  the  owners  of  two-thirds  of  the  capital 
stock  of  such  bank,  and  with  the  approval  of  the  State  Bank  Examiner. 
The  stockholders  shall  make,  execute  and  acknowledge  articles  of  incor- 
poration as  required  by  the  laws  of  the  State  of  Montana  and  shall  set 
forth  therein  the  said  written  consent  of  such  stockholders.  Upon  the 
filing  of  said  articles  as  provided  bv  law,  and  upon  the  approval  of  the 
State  Bank  Examiner,  mch  bank  shall  be  deemed  to  be  reorganized 
under  this  Act,  and  thereupon  all  assets,  real  and  personal,  of  such 
dissolved  National  bank,  shall  be  vested  in  and  become  the  property 
of  such  reorganized  State  bank,  subject  to  all  liabilities  of  such  National 
bank  not  liquidated  before  such  reorganization. 

Section  6.  All  Acts  and  parts  of  Acts  in  conflict  herewith  are 
hereby  repealed. 

Section  7.  This  Act  shall  take  effect  and  be  in  force  from  and 
after  its  passage  and  approval. 

Approved  March  1,  1909. 

CHAPTER  78. 

An  Act  fixing  the  liability  of  a bank  to  its  depositor  for  payment  of 

forged  or  raised  checks. 

Be  it  enacted  by  the  Legislative  Assembly  of  the  State  of  Montana: 

Section  1.  No  bank  shall  be  liable  to  a depositor  for  the  payment 
by  it  of  a forged  or  raised  check  unless  within  one  year  after  the  return 
to  the  depositor  of  the  voucher  of  such  payihent,  such  depositor  shall 
notify  the  bank  that  the  check  so  paid  is  forged  or  raised. 


RELATING  TO  BANKS  AND  BANKING  CORPORATIONS. 


37 


Section  2.  All  Acts  and  parts  of  Acts  in  conflict  with  the  provisions 
of  this  Act  are  hereby  releaped. 

Section  3.  This  Act  shall  be  in  full  force  and  effect  from  and  after 
its  passage  and  approval. 

Approved  March  4,  1909. 

CHAPTER  110. 

An  Act  relating  to  the  payment  of  deposits  in  two  names. 

Be  it  enacted  by  the  Legislative  Assembly  of  the  State  of  Montana: 

Section  1.  When  a deposit  has  been  made,  or  shall  hereafter  be 
made,  in  any  bank,  savings  bank,  banking  institution,  or  trust  company, 
transacting  business  in  this  State,  in  the  names  of  two  persons,  payable 
to  either,  or  payable  to  either  or  the  survivor,  such  deposit,  or  any  part 
thereof,  or  any  interest  or  dividend  thereon,  may  be  paid  to  either  of 
said  persons  whether  the  other  be  living  or  not;  and  the  receipt  or 
acquittance  of  the  person  so  paid  shall  be  a valid  and  sufficient  release 
and  discharge  to  the  bank  for  any  payment  so  made. 

Section  2.  This  Act  shall  be  in  full  force  and  effect  from  and  after 
the  date  of  its  passage  and  approval. 

Approved  March  8,  1909. 

CHAPTER  112. 

An  Act  relating  to  banks  and  banking  and  providing  for  the  creation  of 

a surplus  fund. 

Be  it  enacted  by  the  Legislative  Assembly  of  the  State  of  Montana: 

Section  1.  The  directors  of  any  banking  corporation,  trust  deposit 
and  security  company  or  savings  bank,  organized  under  the  laws  of 
Montana,  or  any  foreign  corporation  or  branch  thereof  doing  a banking 
business  in  Montana,  may  declare  a divided  from  the  net  earnings  after 
deducting  all  losses,  provided  that  before  any  such  dividend  shall  be 
declared,  ten  per  cent  of  the  amount  available  for  such  a dividend  shall 
be  set  aside  into  a surplus  fund,  until  said  surplus  fund  shall  amount 
to  twenty  per  cent  of  the  capital  stock  of  such  corporation. 

Section  2.  All  Acts  and  'parts  of  Acts  in  conflict  herewith  are 
hereby  repealed. 

Section  3.  This  Act  shall  take  effect  and  be  in  force,  from  and  after 
its  passage  and  approval. 

Approved  March  8,  1999. 


PENAL  CODE. 

FRAUDULENT  INSOLVENCIES  BY  CORPORATIONS,  AND  OTHER 
FRAUDS  IN  THEIR  MANAGEMENT. 


Section  8709. 

8710. 

8711. 

8712. 

8713. 

8714. 

8715. 


Frauds  in  subscriptions  for  stock  corporations. 
Fraudulent  issue  of  stock,  scrip,  etc. 

Frauds  in  procuring  organization,  etc.,  of  corporations. 
Unauthorized  use  of  names  in  prospectus,  etc. 
Misconduct  of  directors  of  stock  corporations. 
Savings-bank  officer  overdrawing  his  account. 
Receiving  deposit  in  insolvent  banks. 


LAWS  OF  THE  STATE  OF  MONTANA 


38 

8717.  Frauds  in  keeping  accounts  in  books  of  corporations. 

8718.  Officer  of  corporation  publishing  false  reports. 

8719.  Officer  of  corporation  to  permit  an  inspection. 

8722.  Director  of  a corporation  presumed  to  have  knowledge  of 

its  affairs. 

8723.  Director  present  at  meeting,  when  presumed  to  have 

assented  to  proceedings. 

8724.  Director  absent  from  meeting  when  presumed  to  have 

assented  to  proceedings. 

8725.  Foreign  corporations. 

8726.  Same. 

8727.  Agent  of  foreign  corporation. 

8728.  Corporation  not  complying  with  laws. 

8729.  Agent  of  corporation. 

8730.  “Director”  defined. 

Section  8709.  Every  person  who  signs  the  name  of  a fictitious  person 
to  any  subscription  for,  or  an  agreement  to  take,  stock  in  any  corpora- 
tion, existing  or  proposed,  and  every  person  who  signs  to  any  subscrip- 
tion or  agreement  the  name  of  any  person,  knowing  that  such  person 
has  not  means  or  does  not  intend  in  good  faith  to  comply  with  all 
the  terms  thereof,  or  under  any  understanding  or  agreement  that  the 
terms  of  such  subscription  or  agreement  are  not  to  be  complied  with  or 
enforced,  is  guilty  of  a misdemeanor. 

Section  8710.  Every  officer,  agent  or  other  person  in  the  service  of 
any  joint  stock  company  or  corporation  formed  or  existing  under  the 
laws  of  this  State,  or  of  the  United  States,  or  of  any  State  or  Territory 
thereof,  or  of  any  foreign  government  or  country,  who  wilfully  and 
knowingly,  with  intent  to  defraud,  either — 

1.  Sells,  pledges  or  issues,  or  causes  to  be  sold,  pledged  or  issued, 
•signs  or  executes,  or  causes  to  be  signed  or  executed  with  intent  to 
sell,  pledge  or  issue,  or  cause  to  be  sold,  pledged  or  issued,  any 
certificate  or  instrument  purporting  to  be  a certificate  or  evidence  of 
the  ownership  of  any  share  or  shares  of  such  company  or  corporation, 
■or  any  bond  or  evidence  of  debt,  or  writing  purporting  to  be  a bond 
or  evidence  of  debt  of  such  company  or  corporation,  without  being 
first  thereto  duly  authorized  by  such  company  or  corporation,  or  contrary 
to  the  charter  or  laws  under  which  said  company  or  corporation  exists, 
or  in  excess  of  the  power  of  such  company  or  corporation,  or  of  the 
limit  imposed  by  law  or  otherwise,  upon  its  power  to  create  or  issue 
stock  or  evidence  of  debt;  or, 

2.  Re-issues,  sells,  pledges  or  disposes  of,  or  causes  to  be  re-issued, 
sold,  pledged  or  disposed  of,  any  surrendered  or  canceled  certificates,  or 
other  evidence  of  the  transfer,  or  ownership  of  any  such  share  or  shares, 
is  punishable  by  imprisonment  in  the  State  Prison  not  exceeding  seven 
years,  or  by  a fine  not  exceeding  three  thousand  dollars,  or  both. 

Section  8711.  Every  officer,  agent  or  clerk  of  any  corporation,  or  of 
any  persons  proposing  to  organize  a corporation,  or  to  increase  the 
capital  stock  of  any  corporation  who  knowingly  exhibits  any  false, 
forged  or  altered  book,  paper,  voucher,  security  or  other  instrument  of 


RELATING  TO  BANKS  AND  BANKING  CORPORATIONS. 


39 


evidence,  to  any  public  officer  or  board  authorized  by  law  to  examine 
the  organization  of  such  corporation,  or  to  investigate  its  affairs,  or 
to  allow  an  increase  of  its  capital,  with  intent  to  deceive  such  officer 
or  board  in  respect  thereto,  is  punishable  by  imprisonment  in  the  State 
Prison  not  less  than  three  nor  more  than  ten  years. 

Section  8712.  Every  person  who  without  being  authorized  so  to  do, 
subscribes  the  name  of  another  to,  or  inserts  the  name  of  another  in 
any  prospectus,  circular  or  other  advertisement  or  announcement  of 
any  corporation  or  joint  stock  association,  existing  or  intended  to  be 
formed,  with  intent  to  permit  the  same  to  be  published  and  thereby 
to  lead  persons  to  believe  that  the  person  whose  name  is  so  subscribed 
is  an  officer,  agent,  member  or  promoter  of  such  corporation  or  associa- 
tion is  guilty  of  a misdemeanor. 

Section  8713.  Every  director  of  any  stock  corporation  who  'concurs 
in  any  vote  or  act  of  the  directors  of  such  corporation  or  any  of  them, 
by  which  it  is  intended,  either — 

1.  To  make  any  dividend,  except  from  the  surplus  profits  arising 
from  the  business  of  the  corporation,  and  in  the  cases  and  manner 
allowed  by  law;  or, 

2.  To  divide,  withdraw  or  in  any  manner,  except  as  provided  by  law, 
pay  to  the  stockholders,  or  any  of  them,  any  part  of  the  capital  stock 
of  the  corportion;  or, 

3.  To  discount  or  receive  any  evidence  of  debt  in  payment  of  any 
installment  actually  called  in  and  required  to  be  paid,  or  with  the 
intent  to  provide  the  means  of  making  such  payments;  or, 

4.  To  receive  or  discount  any  note  or  other  evidence  of  debt,  with 
the  intent  to  enable  any  stockholder  to  withdraw  any  part  of  the  money 
paid  in  by  him,  or  his  stock;  or, 

5.  To  receive  from  any  other  stock  corporation,  in  exchange  for 
the  shares,  notes,  bonds  or  other  evidences  of  debt  of  their  own  corpora- 
tion shares  of  the  capital  stock  of  such  other  corporation,  or  notes, 
bonds,  or  other  evidences  of  debt  issued  by  such  corporation,  is  guilty  of 
a misdemeanor. 

Section  8714.  Every  officer,  teller  or  clerk  of  any  savings  bank, 
who  knowingly  overdraws  his  account  with  such  bank,  and  thereby 
wrongfully  obtains*  the  money,  note  or  funds  of  such  bank,  is  guilty 
of  a misdemeanor. 

Section  8715.  No  bank,  banking  house,  exchange  broker,  individual 
banker,  deposit  office  or  firm,  company  or  corporation  or  party  engaged 
in  the  banking,  broker,  exchange,  loan  or  deposit  business  shall  accept 
or  receive  on  deposit,  or  for  safe  keeping,  or  to  loan,  with  or  without 
interest,  from  any  person,  any  money  or  any  bills,  notes,  or  any  paper 
circulating  as  money,  or  any  notes,  drafts,  bills  of  exchange,  bank  checks 
or  other  commercial  paper,  for  safe  keeping  or  for  collection,  when  such 
bank,  banking  house,  exchange  broker,  individual  banker,  deposit  office, 
firm,  company  or  corporation,  or  party,  is  unsafe  and  insolvent. 

If  any  such  bank,  banking  house,  exchange  broker,  individual  banker, 
deposit  office  or  firm,  company,  corporation  or  party,  shall  receive  or 
accept  on  deposit,  or  for  safe  keeping  or  to  loan,  with  or  without 


40 


LAWS  OF  THE  STATE  OF  MONTANA 


interest,  from  any  persons,  any  money  or  any  'bills  of  exchange,  bank 
checks  or  other  commercial  paper,  drafts,  notes  or  other  paper  circulating 
as  money,  or  any  notes,  for  safe  keeping  or  for  collection,  when  unsafe 
or  insolvent,  any  officer,  director,  cashier,  manager,  principal,  agent, 
clerk,  party  or  managing  party,  thereof,  knowing  or  having  reason  to 
know  of  any  such  unsafeness  or  insolvency,  who  shall  knowingly  receive 
or  accept,  be  accessory  to,  or  permit  or  connive  at,  or  receive  or  accept 
on  deposit  therein  or  thereby,  any  such  deposits,  money  or  property  as 
aforesaid,  shall  be  guilty  of  a felony  and  shall  be  punished  by  imprison- 
ment in  the  State  penitentiary  not  less  than  one  year  or  more  than 
twenty  years. 

Section  871G.  But  the  passage  and  approval  of  this  Act  and  the 
amendment  as  herein  provided  shall  not  constitute  a bar  to  the  prose- 
cution of  an  act  or  offense  heretofore  committed  in  violation  of  said 
Section  98G,  but  said  act  or  offense,  and  the  person  committing  the 
same,  may  be  prosecuted,  indicted,  or  informed  against,  and  punished, 
the  same  as  if  this  act  had  not  been  passed. 

Section  8717.  Every  officer,  director  or  agent  of  any  corporation  or 
joint  stock  association,  who  knowingly  receives  or  possesses  himself  of 
any  property  of  such  corporation  or  association,  otherwise  than  in  pay- 
ment of  a just  demand,  and  who,  with  intent  to  defraud,  omits  to  make, 
or  to  cause  or  to  direct  to  be  made,  a full  and  true  entry  thereof  in  the 
books  or  accounts  of  such  corporation  or  association,  and  every  director, 
officer,  agent  or  member  of  any  corporation  or  joint  stock  association 
who,  with  intent  to  defraud,  destroys,  alters,  mutilates  or  falsifies  any  of 
the  books,  papers,  writings  or  securities  belonging  to  such  corporation 
or  association,  or  makes,  or  concurs  in  making  any  false  entries,  or 
omits,  or  concurs  in  omitting  to  make  any  material  entry  in  any  book 
of  accounts  or  other  record  or  document  kept  by  such  corporation  or 
association,  is  punishable  by  imprisonment  in  the  State  Prison  not 
less  than  three,  nor  more  than  ten  years,  or  by  imprisonment  in  the' 
county  jail  not  exceeding  one  year,  or  by  a fine  not  exceeding  five 
hundred  dollars,  or  by  both  imprisonment  and  fine. 

Section  8718.  Every  director,  officer,  or  agent  of  any  corporation  or 
joint  stock  association,  who  knowingly  concurs  in  making,  publishing 
or  posting  any  written  report,  exhibit,  or  statement  of  its  affairs  or 
pecuniary  condition,  or  book  or  notice  containing  any  material  statement 
which  is  false,  or  refuses  to  make  any  book  or  post  any  notice  required 
by  law,  in  the  manner  required  by  law,  other  than  such  as  are  mentioned 
in  this  Chapter,  is  guilty  of  a felony. 

Section  8719.  Every  officer  or  agent  of  any  corporation,  having  or 
keeping  an  office  within  this  State,  who  has  in  his  custody  or  control 
any  book,  paper,  or  document  of  such  corporation,  and  who  refuses  to 
give  to  a stockholder  or  member  of  such  corporation,  lawfully  demanding, 
during  office  hours,  to  inspect  or  take  a copy  of  the  same,  or  of  any  part 
thereof,  a reasonable  opportunity  so  to  do,  is  guilty  of  a misdemeanor. 

Section  8722.  Every’  director  of  a corporation  or  joint  stock  associa- 
tion is  deemed  to  possess  such  a knowledge  of  the  affairs  of  his  cor- 


RELATING  TO  BANKS  AND  BANKING  CORPORATIONS. 


41 


poration  as  to  enable  him  to  determine  whether  any  act,  proceeding 
or  omission  of  its  directors  is  a violation  of  this  Chapter. 

Section  8723.  Every  director  of  a corporation  or  joint  stock  asso- 
ciation who  is  present  at  a meeting  of  the  directors  at  which  any  act, 
proceeding  or  omission  of  such  directors,  in  violation  of  this  Chapter 
occurs,  is  deemed  to  have  concurred  therein  unless  he  at  the  time  causes 
or  in  writing  requires  his  dissent  therefrom  to  be  entered  in  the  minutes 
of  the  directors. 

Section  8724.  Eivery  director  of  a corporation  or  joint  stock  asso- 
ciation, although  not  present  at  a meeting  of  the  directors  at  which 
any  act,  proceeding  or  omission  of  such  directors  in  violation  of  this 
Chapter  occurs,  is  deemed  to  have  concurred  therein  if  the  facts  consti- 
tuting such  violation  appear  on  the  records  or  proceedings  of  the  board 
of  directors  and  he  remains  a director  of  the  same  company  for  six 
months  thereafter  and  does  not  within  that  time  cause  or  in  writing 
require  his  dissent  from  such  illegality  to  be  entered  in  the  minutes 
of  the  directors. 

Section  8725.  It  is  no  defense  to  a prosecution  for  a violation  of 
the  provisions  of  this  Chapter  that  the  corporation  was  one  created 
by  the  laws  of  another  State,  government  or  country,  if  it  was  one 
carrying  on  businessi  or  keeping  an  office  therefor  within  this  State. 

Section  8726.  Every  foreign  corporation  doing  business  in  this 
State  contrary  to  the  provisions  of  Title  XII,  Part  IV,  Division  1,  of  the 
Civil  Code,  is  guilty  of  a misdemeanor. 

Section  8727.  Every  person  who  acts  as  agent  or  in  any  other 
capacity  for  a foreign  corporation  who  has  not  complied  with  the 
provisions  of  law  relating  to  foreign  corporations,  is  guilty  of  a mis^ 
demeanor. 

Section  8728.  Every  corporation  which  fails  to  comply  with  the 
provisions  of  law  relating  to  corporations,  as  prescribed  in  the  Civil 
Code,  is  guilty  of  a misdemeanor. 

Section  8729.  Every  person  who  acts  as  an  officer,  agent  or  in 
any  other  capacity  for  a corporation  which  has  not  complied  with  the 
provisions  of  law  as  prescribed  in  the  Civil  Code,  is  guilty  of  a mis- 
demeanor. 

Section  8730.  The  term  “director,"  as  used  in  this  Chapter,  embraces 
any  of  the  persons  having  by  law  the  direction  or  management  of  the 
affairs  of  a corporation,  by  whatever  name  such  persons  are  described 
in  its  charter  or  known  by  law. 


42 


LAWS  OF  THE  STATE  OF  MONTANA 


CONSTITUTIONAL  PROVISIONS,  ARTICLE  XV. 

CORPORATIONS  OTHER  THAN  MUNICIPAL. 

Section  4.  The  Legislative  Assembly  shall  provide  by  law  that  in 
all  elections  for  directors  or  trustees  of  incorporated  companies,  every 
stockholder  shall  have  the  right  to  vote  in  person  or  by  proxy  the 
number  of  shares  of  stock  owned  by  him  for  as  many  persons  as  there 
are  directors  or  trustees  to  be  elected  or  to  cumulate  said  shares,  and 
give  one  candidate  as  many  votes  as  the  number  of  directors  multiplied 
by  the  number  of  his  shares  of  stock  shall  equal,  or  to  distribute  them, 
on  the  same  principle,  among  as  many  candidates  as  he  shall  think 
fit,  and  such  directors  or  trustees  shall  not  be  elected  in  any  other 
manner. 

Section  10.  No  corporation  shall  issue  stocks  or  bonds,  except  for 
labor  done,  services  performed,  or  money  and  property  actualy  received; 
and  all  fictitious  increase  of  stock  or  indebtedness  shall  be  void.  The 
stock  of  corporations  shall  not  be  increased  except  in  pursuance  of 
general  law,  nor  without  the  consent  of  the  persons  holding  a majority 
of  the  stock  first  obtained  at  a meeting  held  after  at  least  thirty  days’ 
notice  given  in  pursuance  of  law. 


INDEX 


Articles  of  Incorporation. 

banks  of  discount  and  deposit  

contents  : 381  8 

defined  

fees  for  filing  

must  be  acknowledged  

trust  companies  

Attorney  General. 

duties  regarding  insolvent  banks  

duties  regarding  forfeiture  of  franchise  

Banks  of  Discount  and  Deposit. 

See  also  Penal  Code  and  Constitutional  Provisions. 

articles  of  incorporation  

articles  of  incorporation  defined  

articles  of  incorporation  contents  

attorney  general,  duties  regarding  forfeiture  of  franchise 

capital  stock,  amount  necessary  to  be  paid  in  

capital  stock,  business  not  to  be  transacted  until  paid  in 


Sec.  Page. 


capital  stock,  increase  of 


capital  stock,  impairment  of  

capital  stock,  reduction  of  

certificate  of  authority  to  commence  business  

conversion  from  national  to  state  bank,  see  national 
banks. 

conversion  from  state  to  national  bank,  see  state  banks. 

county  attorney,  'must  prosecute  when  

deposits  in  two  names  payable  to  whom Chapter  110 

deposits,  not  to  be  received  when,  penalty , 

deposits,  to  be  kept  separate  when  

deposits,  to  be  returned  when  

directors,  liability  upon  failure  to  make  report  

directors,  election  of  

directors,  loans  to  unlawful  when,  penalty 3993 

directors,  oath  of  office  

directors,  qualification  of  . . 

directors,  term  of  office  

disolution  of,  voluntary  • 

dividends,  must  be  from  net  earnings  

dividends,  must  be  reported  to  state  examiner  

dividends,  shall  not  be  made  when  

dividends,  surplus  fund  must  be  created  from  

Chapter  112 

extension  of  corporate  existence  

false  entries,  penalty  for  making  

fees,  for  state  examiner’s  fund  

fees,  penalty  for  failure  to  pay  

forfeiture  of  franchise  

forged  or  raised  checks,  when  not  liable  for  paving 

Chapter  78 

impairment  of  capital,  duties  of  state  examiner  

indebtedness  and  liability  of  any  person,  firm  or  corpora-  j 

tion,  limited  to  what  I 

insolvency  or  impaired  capital,  see  insolvent  banks. 

liabilities,  immediate,  what  included  

list  of  stockholders  and  officers  to  be  kept  where  

loans,  limitation  of  to  association  or  individual  ! 

loans,  not  to  be  made  when  

loans,  to  managing  officers  and  directors  must  be  \ 

approved  when,  penalty  for  violation  i 

loans,  to  managing  officers  and  directors  unlawful  wiien,  ( 
penalty  for  violation  1 


3909 

7 

3819 

4 

3817 

4 

165 

5 

3820 

5 

3936 

13 

4004 

25 

3919 

9 

3909 

7 

3817 

4 

3818 

4 

3919 

9 

3909 

7 

3909 

7 

3918 

9 

10 

42 

4005 

26 

4004 

25 

4006 

26 

3909 

7 

3995 

22 

1 

37 

4007 

26 

4008 

27 

4007 

26 

4007 

26 

4000 

23 

3912 

8 

3994 

22 

3912 

^8 

3912 

8 

3912 

8 

4003 

24 

3916 

9 

3998 

23 

3921 

10 

1 

37 

3907 

29 

4001 

24 

215 

28 

216 

29 

3919 

9 

1 

36 

4004 

25 

3920 

9 

4011 

28 

3921 

10 

3917 

9 

3920 

9 

4011 

28 

3921 

10 

3993 

22 

3994 

09 

3993 

22 

3994 

22 

44 


TNDEX. 


may  be  dissolved  how  

misdemeanor,  to  violate  any  law  -relating-  to  banks,  when 

penalty  is  not  prescribed  

must  not  purchase  or  hold  stock  of  other  corporations 

except  when  

must  not  purchase  or  hold  its  own  stock,  except  when 

name  of  

name  must  not  be  that  of  any  other  incorporated  bank 

officers,  how  chosen  

officers,  liability  of  

powers  

real  estate,  conveyance  of,  how  authorized  and  made.... 

real  estate,  purchase  and  conveyance  of  

real  estate,  shall  be  taxed  how  

reports,  penalty  for  failure  to  make  

reports,  penalty  for  making-  false  reports  

reports,  to  be  made  after  declaring  dividends  . . 

reports  to  state  examiner  confidential  

report  to  state  examiner  when  

reports  io  be  published  when  

reports  verified  how  

reserve,  amount  required  

(Section  3921,  page  10,  also  relates  to  reser 
Section  4010  governs.) 

reserve  banks,  how  approved  


stockholders,  liability  of 


taxes,  property  shall  be  taxed  how 


Constitutional  Provisions. 

stockholder’s  vote,  legislature  to  regulate  

stock  and  bonds  shall  not  be  issued  except  for 

what  purposes  

stock,  increased  how  


Sec. 

4003 

4014 

3910 

3910 

3910 

3910 

3912 
3915 

3911 
3914 

3913 


Page. 

24 


28 


' 

4013 

28 

4000 

23 

4001 

24 

3998 

23 

‘3999 

23 

3996 

23 

3996 

23 

3996 

23 

4010 

27 

but 

4010 

27 

3995 

22 

i 

| 3915 

8 

1 401.2 

28 

112 

1 

37 

i 

i 3922 

10 

| 4013 

28 

! tO  * 

- 37 

1 

34 

Art.  Sec. 

Page. 

15 

4 

42 

15 

10 

42 

15 

10 

42 

Corporations. 

See  also  Banks  of  Discount  and  Deposit. 
See  also  Foreign  Banking  Corporations. 

See  also  Savings  Banks. 

See  also  Trust  Companies. 

See  also  Penal  Code  Provisions. 

articles  of  incorporation,  contents  of  . 

articles  of  incorporation,  defined  

articles  of  incorporation,  execution  of 


Sec.  Page. 
3818  4 

3817  4 

3820  5 


County  Attorney. 

duty  to  prosecute  lor  violations  of  act  

state  examiner  to  report  violations  to  

Deposits. 

in  two  names  payable  to  whom... Chapter  110 

not  to  be  received  when  

to  be  kept  separate  when  

to  be  returned  when  

trust  funds  deposited  without  notice  of  trust  payable 


to  whom  in  case  of  death  Chapter  37 

Dividends. 

may  be  declared  when  Chapter  112 

must  be  reported  to  state  examiner  

Extension  of  Corporate  Existence  

Foreign  Banking-  Corporations. 

attachment  of  stock  of,  manner Chapter  109 


branch  banks,  certificate  of  state  auditor  

branch  banks,  how  established  

branch  banks,  reports,  publication  of  

branch  banks,  reports  to  state  examiner  

branch  banks,  report  upon  declaring  dividend  . . 

capital  must  not  be  withdrawn  

capital  stock,  misstatement  of  amount  in  notice 
certifying  check  without  deposit,  prohibited  .... 


3995 

3995 


1 

4007 

4007 

4007 

1 


1 

3998 

3907 


1 

3978 

3977 

3980 

3980 

3981 
3985 
3988 

3982 


22 

22 


37 

26 

26 

26 

34 


37 

23 

29 


34 

31 

30 

31 
31 

31 

32 

33 
32 


INDEX. 


45 


circulating  notes  or  bills,  assets  of  bank  not  liable  for 
deposits  not  to  be  withdrawn  or  kept  or  used  in  any 

other  branch  bank  

doing  business  in  state  to  be  deemed,  for  jurisdictional 

purposes,  corporations  of  the  state Chapter  109 

examination,  duty  of  state  examiner  

fee  for  state  examiner’s  fund  

impairment  of  capital,  cancellation  of  authority  

impairment  of  capital,  duties  of  state  examiner  

loans,  limit  on  amount  

officers,  agents  or  employees  violating  act,  additional 

penalties  

officers  making  false  entries,  statements  or  reports, 

penalty  

officers  liable  for  certifying  any  fictitious  obligation 

reserve  : 

shall  be  deemed  a foreign  corporation  

shall  not  do  business  in  state  except  as  provided 

state  auditor,  duty  to  cancel  certificate  of  authority  when  -! 

state  examiner,  fees  of  

statement,  failure  to  make  out  

surplus,  must  not  be  withdrawn  

violation  of  act,  additional  penalties  

Governor. 

duties  of,  in  regard  to  insolvent  banks  

Insolvent  Banks. 

attorney  general,  duties  as  to  

attorney  general  to  apply  for  a receiver  when  

receiver,  compensation  of  

receiver,  shall  be  subject  to  removal  when  

receiver,  shall  make  reports  to  state  examiner  

state  examiner  to  report  condition  to  governor  when  ... 

state  examiner  to  take  charge  of  when  

National  Banks.  Change  to  State  Banks. 

approval  of  state  examiner  necessary  

articles  of  incorporation  of  new  bank  

assets  to  become  property  of  state  bank  

assets  shall  remain  subject  to  the  liabilities  of  the 

national  bank  

filing  articles  of  incorporation  

may  reorganize  as  state  bank  when  

shall  set  forth  consent  of  stockholders  to  change  

stockholders  shall  execute  articles  of  incorporation 

Penal  Code  Provisions.  (Fraudulent  Insolvencies,  etc.) 

acting  as  agent  or  officer  of  corporation  which  has  not 

complied  with  provisions  of  civil  code  

acting  as  agent  of  foreign  corporation  which  has  not 

complied  with  the  law  

director  defined  

director,  deemed  to  have  knowledge  of  affairs  

director,  misconduct  of  

director,  not  present  at  meeting  deemed  to  have  con- 
curred in  action  after  six  months  

director,  present  at  meeting  deemed  to  have  concurred 

in  action,  except  when  : 

fraud  in  organization  

fraudulent  sale,  issue,  etc.,  of  stock  

foreign  corporation  liable  to  punishment  S725 

misconduct  of  directors  

no  defence  that  corporation  is  foreign  

non-compliance  with  provisions  of  civil  code  a mis- 
demeanor   

officers,  directors  or  agents  keeping  false  accounts 

officer  publishing  false  report  

receiving  deposits  by  insolvent  banks  

refusing  inspection  of  books  to  stockholders  

savings  bank  officer  overdrawing  account  a misdemeanor 

subscriptions  to  stock,  fraudulent  

unauthorized  use  of  name  in  prospectus  

unlawful  dividends  

unlawfully  receiving  or  obtaining  any  property  of  a 

corporation  

Private  Banks. 

must  not  use  corporate  name  


Sec. 

3989 

3985 

1 

3988 

3986 

3987 
4004 
3984 

3991 


3990 

3982 
3979 
3976 
3976 

3983 
3987 
3986 
3983 
3985 

3991 


4004 


4004 

4004 

4004 

4004 

4004 

4004 

4004 


a 

5 


a 

5 


8729 

8727 

8730 
8722 
8713 

8724 


8723 

8711 
8710 
8726 

8713 
8725 

8728 

8717 

8718 
8715 

8719 

8714 
8709 

8712 

8713 


8717 


3910 


Page. 

33 


34 

32 

32 

33 
25 

32 

33 

33 

32 

31 
30 
30 

32 

33 
32 
32 

32 

33 


25 

25 

25 

25 

25 

25 

25 

25 


36 

36 

36 


36 

36 

36 

36 

36 


41 

41 

41 

40 
39 

41 

41 

38 

38 
41 

39 
41 

41 

40 
40 

39 

40 
39 

38 

39 

39 

40 


7 


46 


INDEX. 


Reserve. 

amount  required  

Savings  Banks.  „ 

See  also  Penal  Code  and  Constitutional  Provisions. 

articles  of  incorporation,  contents  

articles  of  incorporation,  defined  

books  of,  must  be  open  to  inspection  and  examination 

when  and  by  whom  

by-laws,  must  be  adopted  by  directors  

capital  stock,  amount  for  which  may  be  incorporated  and 
how  paid  in  

capital  stock,  increase  of  j 

capital  stock,  proportion  to  be  invested  and  in  what 

securities  .' 

capital  stock,  reduction  of  

capital  stock,  to  be  held  as  guarantee  to  depositors  and 

invested  how  

contingent  fund  

conversion  from  national  to  state  bank,  see  national 
banks. 

conversion  from  state  to  national  bank,  see  state  banks. 

deposits,  in  two  names  payable  to  whom Chapter  110 

deposits,  must  be  received  and  returned  how  

deposits,  not  to  be  received  when,  penal ty 

deposits,  proportion  of  which  must  be  invested  in  what 

securities  

deposits,  regulations  regarding  must  be  posted  where... 

deposits,  to  be  kept  separate  when  

deposits,  to  be  returned  when  

deposits,  what  must  be  received  and  invested  

directors,  liability  upon  failure  to  make  report  

directors,  majority  vote  necessary  for  what  purpose 

directors,  oath  of  office  

directors,  qualifications  of  

directors,  shall  not  borrow  from  corporation  or  receive 

salary  until  when  

directors,  term  of  office  

dissolution  of,  voluntary  

dividends,  may  be  declared  when  Chapter  112 

dividends,  must  report  to  state  examiner  after  declaring 

extension  of  corporate  existence  

false  entries,  penalty  for  making  

fees  for  state  examiner’s  fund  

fees,  penalty  for  failure  ..o  pay  

forged  or  raised  checks,  when  not  liable  for  paying 

Chapter  78 

incorporation,  number  who  may  incorporate  

impairment  of  capital,  duties  of  state  examiner  

insolvency  or  impaired  capital,  see  insolvent  banks, 
liability  of  person,  firm  or  corporation  limited  to  what 

loans,  how  and  to  whom  to  be  made  . 

loans,  not  to  be  made  to  any  officer,  director  or  servant 

of  corporation  

married  women  may  make  deposits  and  draw  dividends 

may  be  dissolved  how  

may  deposit  cash  where  

minors  may  make  deposits  and  draw  dividends  

misdemeanor  to  violate  any  law  relating  to  banks  when- 
ever penalty  is  not  prescribed  

name  shall  not  be  adopted  by  any  other  corporation 

in  state  

officers,  directors  may  choose  ... 

officers,  liability  of  

officer  or  employee  of,  overdrawing  his  account  

real  estate,  bank  may  purchase,  hold  or  convey  what  ... 

real  estate,  how  taxed  

reports  

reports,  penalty  for  failure  to  make  

reports,  penalty  for  making  false  reports  

report  to  be  made  after  declaring  dividend  

report  to  be  made  to  state  examiner  

reports  to  be  published  when  

reports  to  state  examiner  confidential  


Sec.  Page. 
4010  ' 27 


3818  4 

3817  4 


3955 

21 

3947 

19 

3946 

18 

3918 

9 

4005 

26 

10 

42 

3951 

20 

4006 

26 

3946 

18 

3956 

21 

1 

37 

3950 

20 

4007 

26 

4008 

27 

3951 

20 

3950 

20 

4007 

26 

4007 

26 

3949 

19 

4000 

23 

3948 

19 

3947 

19 

3947 

19 

3952 

20 

3947 

19 

400o 

24 

1 

37 

3998 

23 

3907 

29 

4001 

24 

215 

28 

216 

29 

1 

36 

3945 

18 

4004 

25 

4011 

■28 

3951 

20 

3952 

20 

3957 

21 

4003 

24 

3958 

21 

3957 

21 

4014 

28 

3945 

18 

3947 

19 

3953 

20 

8714 

39 

3954 

20 

4013 

28 

3955 

21 

4000 

23 

4001 

24 

3998 

23 

3996 

23 

3996 

23 

3999 

23 

INDEX. 


47 


reports,  verified  how  

reserve,  amount  required  

reserve  bank,  how  approved  

stockholders,  liability  of  

stockholders,  must  elect  directors  

stockholders  must  receive  certificate  of  stock  

stockholders  to  participate  in  profits  when  . . . 

surplus  fund  must  be  created  Chapter  112  j 

taxes,  property  shall  be  taxed  how  

title,  unlawful  to  use  unless  incorporated,  penalty 

trust  funds  deposited  without  notice  of  trust,  payame 

to  whom  in  case  of  death  Chapter  37 

Secretary  of  State. 

fees  of  

fees  must  be  collected  in  advance  

fees  when  collected  to  be  paid  to  state  treasurer 

musf  not  charge  state  and  county  officers  fees,  when 
State  Auditor. 

duties  of,  relating  to  banks,  transferred  to  state 

examiner  

State  Bank.  Change  to  National  Bank. 

See  also  Banks  of  Discount  and  Deposit. 

articles  of  association  on  becoming  a national  bank 

board  of  directors  to  be  directors  of  new  bank 

capital  stock  may  be  increased  or  decreased  

cashier  to  give  notice  of  decision  to  change  

certificate  of  change  

charter,  wh^n  deemed,  to  be  surrendered  

' corporate  existence,  continuation  of  

directors,  to  be  directors  of  new  corporation  for  what 

purpose  

directors  of  new  corporation,  powers  of  

liabilities  not  released  by  change  

new  directors  may  be  chosen  

new  stock,  to  whom  may  be  awarded  

property  vests  in  new  bank  how  

state  bank  examiner,  notice  to  

stockholders,  vote  to  become  national  bank  

surplus,  what  to  be  done  witli  

taxes  imposed  by  state  

State  Bank  Examiner. 

banks  must  report  to,  when  \ 

duties,  must  examine  foreign  banking  corporations 

duties  of  auditor  relating  to  banks  transferred  to 

duties,  when  banking  corporation  is  insolvent  or  capital 

impaired  -j 

duties,  upon  dissolution  of  banking  corporation  

fees  of  • 

foreign  banking  corporations,  must  report  when  -j 

may  approve  reserve  banks  

must  approve  increase  of  capital  stock  

must  approve  decrease  of  capital  stock  

must  report  to  county  attorney,  when  

must  report  to  governor  and  attorney  general,  when 

Trust  Companies. 

See  also  Penal  Code  and  Constiutional  Provisions. 

articles  of  agreement,  execution  and  filing  

articles  of  agreement,  what  must  set  forth  

articles  of  incorporation,  void  when  

books  and  records  shall  be  open  for  inspection,  when 

and  by  whom  

business  of,  extending  or  changing  

business  of,  must . begin  how  soon  

capital  stock,  amount  j 

capital  stock,  assessment  for  payment  of  

capital  stock,  calling  in  unpand  installments  of 

capital  stock,  decrease  of  

j 

1 


Sec. 

3996 

4010 

4010 

3953 

3947 

3946 

3946 

1 

3956 

4013 

3992 

1 


165 

165 

165 

165 


4009 


9 


3 
1 

4 


3 

3 


1 

1 

3 

2 

3996 

3998 

3986 

4009 

4004 
4007 

4003 
215 

3980 

3981 

4010 

4005 

4006 
3995 

4004 


3936 

3936 

3924 

3940 

3943 

3924 

3924 

3938 

3929 

3929 

3943 

3924 

3943 

10 


Page. 

23 

27 

27 
20 
19 
18 
18 
37 
21 

28 
22 

34 


5 

6 
6 
6 


27 


35 

35 

35 

35 

36 
35 
35 

35 

35 

35 

35 

35 

36 
35 
35 
35 
35 


23 

23 
32 

27 

25 

26 

24 

28 
31 
31 
27 
26 
26 
22 

25 


13 

13 

11 

16 

17 

11 

11 

15 

12 

12 

17 

11 

17 

42 


capital  stock,  increase  of 


48 


INDEX. 


Sec. 

capital  stock,  investment  in  securities  3930 

capital  stock,  reduction  of  4006 

capital  stock,  sale  of  for  non-payment  of  installments, 

after  notice  3929 

certificate  of  incorporation,  shall  be  taken  in  courts  as 

evidence  of  what  3936 

change  of  business  3943 

contracts,  receipts  and  certificates,  may  execute  3928 

conversion  from  national  t>  state  bank,  see  national 
banks. 

conversion  from  state  to  national  bank,  see  state  banks. 

deposits  in  two  names,  payable  to  whom Chapter  110  1 

, l 4007 

deposits,  not  to  be  received  when,  penalty  \ 4908 

deposits,  to  be  kept  separate  when  4007 

deposits,  to  be  returned  when  4007 

deposits,  when  payable  on  demand  3931 

directors,  election  of  3926 

directors,  election  of  may  be  adjourned  3938 

directors,  election  of,  notice  3938 

directors,  liability  upon  failure  to  make  report  4000 

directors,  liable  when  upon  declaring  dividend 3939 

i 3993 

directors,  loans  to  unlawful  when,  penalty  3994 

J 3926 

directors,  number  of  3933 

directors,  qualifications  of  • 3938 

directors,  quorum  3926 

directors,  shall  render  correct  accounts  to  stockholders  3910 

directors,  term  of  office  3926 

directors,  term  of  office  when  more  than  five  3938 

directors,  vacancy  in  how  filled  3926 

dissolution  of,  voluntary  4003 

dividends,  may  be  declared  when  j 3939 

Chapter  112  1 1 

dividends,  must  report  to  state  examiner  after  declaring  3998 

extension  of  corporate  existence  3907 

false  oath  or  affirmation  by  clerk  or  officer,  perjury....  3940 

false  entries,  penalty  for  making  4001 

fees  for  state  examiner’s  fund  215 

fees,  penalty  for  failure  to  pay  216 

forged  or  raised  ch3cks.  when  not  liable  for  paying 

Chapter  78  1 

impairment  of  capital,  duties  of  state  examiner  4004 

insolvency  or  impaired  capital,  see  insolvent  banks. 

incorporators,  first  meeting,  notice  of  3925 

incorporators,  number  3923 

liability  of  person,  firm  or  corporation,  limited  to  what  4011 
loans,  buildings  upon  which  are  made  to  be  insured....  3932 
loans,  to  managing  officers  and  directors  must  be  j 3993 

approved  when,  penalty  for  violation  1 3994 

loans,  to  managing  officers  and  directors  unlawful  when,  j 3993 

penalty  for  violation  ' 3994 

may  be  dissolved  how  4003 

misdemeanor,  to  violate  any  law  relating  to  banks,  when- 
ever penalty  is  not  prescribed  4014 

name  or  title  3935 

notice  of  meeting  of  stockholders  to  increase  or  decrease 

capital  stock,  etc 3943 

penalty  for  failure  to  make  reports  3996 

powers  enumerated  3927 

purposes  for  which  corpoi’ation  may  be  formed  3937 

real  estate,  amount  company  may  own  3939 

real  estate,  how  taxed  4013 

real  estae,  may  acquire  in  settlement  of  debts 3928 

real  estate,  what  may  purchase,  lease,  hold  or  convey  3928 

receiver,  application  for  when  insolvent  4004 

reports,  penalty  for  failure  to  make  4000 

reports,  penalty  for  making  false  reports  4001 

reports,  to  be  made  after  declaring  dividends  3998 

reports,  to  be  made  to  state  examiner  3996 

reports,  to  be  published  when  3996 

reports,  to  state  examiner  confidential  3999 

reports,  verified  how  3996 

reserve,  amount  required  4010 

reserve  banks,  how  approved  4010 


Page. 

12 

26 

12 

13 

17 

12 


37 

26 

27 
26 
26 
12 
11 
15 

15 

23 

16 
22 
22 
11 
15 

15 
11 

16 
11 

15 
11 

24 

16 
37 

23 
29 
16 

24 

28 
29 

36 

25 

11 

11 

28 

12 

22 

22 

22 

22 

24 

28 

13 

17 

23 

11 

14 
16 
28 
12 
12 

25 

23 

24 
23 
23 
23 
23 
23 
27 
27 


INDEX.  49 


Sec.  Page. 

rights  of  corporation  heretofore  organized,  how  affected  3942  17 

secretary  of  state,  shall  give  certificate  of  incorporation 

setting  forth  what  3936  13 

shares  of  stock,  transferable  hew  3933  13 

shares  of  stock,  personal  property  3933  13 

state  examiner,  duties  as  to  insolvent  banks  4004  25 

stockholders,  executors,  administrators,  etc.,  not  liable 

for  corporate  debts  3941  16 

stockholders,  executors,  administrators,  guardians,  etc., 

power  to  represent  stock  3941  16 

stockholders,  liability  for  debts  of  corporation 3934  13 

stockholders,  liability  of  estates  of  deceased  stockholders  3941  16 

stockholders,  persons  pledging  stock  held  as  stockholders  3941  16 

surplus  fund,  must  be  created Chapter  112  1 37 

taxes,  property  shall  be  assessed  how  \ 4013  28 

term  of  corporate  existence  3936  13 

title,  unlawful  to  use  unless  incorporated  3992  22 

trust  funds  deposited  without  notice  of  trust  payable  to 

whom  in  case  >f  death Chapter  37  1 34 


